Real Estate Tax Deductions: Write-Offs for Realtors
DISCLAIMER: This blog is provided for informational purposes only and is not intended as legal, tax, or financial advice. All details below are based on publicly available sources, and individual circumstances vary. Always consult a licensed CPA or tax professional to verify what deductions apply to your specific real estate business.
What can you write off as a real estate agent?
If you're a licensed real estate agent operating as an independent contractor, you may be eligible for a wide range of tax deductions. These write-offs can significantly reduce your taxable income—but only if they are ordinary, necessary, and directly related to your business. Below are commonly recognized deductions, drawn from up-to-date sources. Again, consult a CPA before making decisions based on this list.
Vehicle and Mileage
According to MileIQ, agents may deduct vehicle expenses using either:
Standard mileage method ($0.70 per mile in 2025), or
Actual expense method, which includes gas, maintenance, and depreciation.
Driving to client showings, open houses, or property tours usually qualifies. Commuting from home to a primary office does not.
Home Office Deduction
Per VirtueCPAs, if you have a dedicated space in your home used exclusively for business, you can deduct:
Simplified method: $5 per square foot, up to 300 square feet
Actual expense method: Pro-rated share of rent, utilities, insurance, etc.
Marketing and Advertising
Marketing is one of the most deductible categories. According to AgentFire, common write-offs include:
Online ads (Google, Facebook, Instagram)
Business cards, flyers, brochures
Photography and video for listings
Website and CRM software
Branded swag and client gifts (with limits)
Licensing, Education, and Professional Fees
Agents can often deduct expenses related to maintaining their professional standing. Collective.com and RealTrends list:
License renewals and CE courses
MLS dues and REALTOR® association fees (minus lobbying portions)
Coaching or business consulting services
Technology and Tools
VirtueCPAs and HelloBonsai highlight deductions such as:
Smartphones (business use portion)
Laptops and printers
E-signature and transaction platforms
Cloud storage and email services
Meals, Travel, and Client Relations
If you're dining with clients or traveling for business, Virtuance explains you may be able to deduct:
50% of business meals with documentation
Airfare, lodging, and transportation for out-of-town real estate events
Insurance and Retirement Contributions
Real estate agents who are self-employed may be able to deduct:
Health insurance premiums (if not eligible for an employer plan)
E&O insurance and business liability coverage
Contributions to a SEP-IRA or Solo 401(k) (VirtueCPAs)
What You Can’t Deduct
You cannot deduct:
Personal clothing or grooming
Commuting costs to your regular office
Meals or entertainment without business justification
Lobbying portions of association dues (IRS.gov)
Stay Organized All Year
To maximize your deductions:
Use a dedicated business bank account
Track mileage with an app
Save every receipt and label expenses clearly
Consider hiring a bookkeeper or using software like QuickBooks or FreshBooks (AgentFire)
Final Thoughts
Tax deductions can make a significant impact on your bottom line as a real estate professional. But no two businesses are the same. While this list provides a helpful overview based on third-party sources, your exact deductions depend on your unique setup and compliance with IRS regulations.
DISCLAIMER: This blog is not tax, legal, or financial advice. It is for general information only and includes references to third-party content. Always consult a qualified CPA or tax advisor before relying on any deduction or strategy listed above.
