Tax Time for Realtors
The last time I wrote about taxes, it was on behalf of homeowners. Today I’m writing it for Realtors with the disclaimer that I am NOT a tax attorney, a tax expert, or an accountant. What I do have gripped in my hands is a sheet of paper that a fellow agent handed me earlier today from a tax company that lists “Realtor Deductions”.
The sheet says when completing the form, do not include expenses for which you have been reimbursed, expect to be reimbursed, or are reimbursable. Here are deductions for Realtors:
- Advertising
- Appraisal Fees
- Business Cards
- Bank Charges
- Clerical
- Client Gifts
- Courier Service
- Fees (including commissions paid, escrow/loan fees, and referrals)
- Film/Processing (Really? Do agents still process film? If you do, go here.)
- Flowers/cards
- Keys/locksmith
- Lock Boxes
- Map Books
- Office Expense
- Open House
- Rent
- Sales Assistants
- Repairs
- Signs, Flags, Banners
- Food (For open houses, maybe?)
- Software
- Photocopying
- Printing
- Tools
- Stationery
Professionally, agents can deduct dues, Errors & Omissions insurance (E&O), legal fees, licenses, memberships, MLS fees, and publications. In addition, seminars, continuing education, and resumes are also allowable. The equipment category includes briefcase, calculator, desk, camera, chair, filing cabinet, cell phone, tape recorder, telephone, answering service, long distance faxes, pay phone, and beeper/pager.
Tax time can be very tricky, so when in doubt consult a tax adviser. I save my receipts throughout the year in one big file, but another agent had a better idea than me. At the end of each month, he filled out his spreadsheet and then stapled all the receipts by month. When he turned in his paperwork to his tax guy, all the hard work was already done.
Maybe my New Year’s resolution should’ve been organizing my taxes better.




