Tax Write-Offs for Real Estate Agents: Guide & Worksheet

When you work as a real estate agent, taxes are an inevitable part of the job. However, with the proper knowledge, you can leverage deductions to reduce your tax liability. Learning what expenses you can claim could help keep more money in your pockets when tax season arrives. 

In this article, we’ll guide you through the standard tax write-offs for real estate agents, where to report them on your tax forms, and provide valuable tools like a business expenses worksheet to help you stay organized. 

Download the realtor tax deduction worksheet

To ensure you’re not leaving any tax write-offs on the table, it’s essential to track your expenses throughout the year. Keeping all your receipts and invoices in a folder will help you maintain accurate records. 

Also, a helpful tool is our Real Estate Agent Tax Deductions Checklist, where you can record all your business expenses, simplifying your reporting when it comes time to file your taxes. Download it below in Google Doc or PDF. 

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Tax write-offs for real estate agents

According to the Internal Revenue Service (IRS) guidelines, the expenses you claim must be considered “ordinary and necessary.” They should be normal and common expenses that help you conduct your business. Simply put, it shouldn’t raise an eyebrow when someone reviews your tax forms. 

Here’s a comprehensive list of tax deductions for real estate professionals. Most of these expenses can be written off in Part II of your Schedule C.

Operating expenses

• Business insurance 
• Cell phone bill
• Software subscription
• Desk fees 
• Office supplies (e.g. stationary, pens, envelopes, stamps)
• Home office expenses (e.g. office furniture, utilities, internet, property insurance, mortgage interest, property taxes)
• Electronics (e.g. laptop, tablet, printer, GPS, camera)
• Equipment (e.g. cleaning tools, measuring tape, calculator, flashlights) 

Advertising and marketing expenses 

• Business cards
• Brochures/flyers
• Direct mail
• Signage/banners
• Print ads 
• Website hosting/domain fees

Training and networking

• Workshops/seminars
• Educational courses
• Conferences/conventions
• Textbooks

Professional and financial fees

• Association and membership dues
• Licensing fees
• Multiple Listing Service (MLS) fees
• Legal fees
• Bank fees
• Commission fees
• Referral fees
• Photographer/graphic designer
• Staging fees
• Health insurance premiums

Client expenses

• Client gifts (up to $25 per client) 
• Meals and entertainment

Travel and accommodation

• Transportation (e.g. car rentals, flights, train rides, Uber or Lyft rides)
• Accommodations (e.g. hotels, Airbnb)
• Meals

Vehicle mileage-related tax deductions 

As a real estate broker or agent, you’ll likely need to drive a car for the following activities:

• Attend client meetings
• Conduct showings
• Host open houses
• Participate in community events
• Close transactions 

The good news is that you can claim vehicle expenses on your tax return. In fact, the largest expenses category in previous years was vehicle expenses, totalling $1,650, according to the 2024 member profile of the National Association of REALTORS (NAR).

The following is a list of realtor mileage deductions to reduce your tax liability:

• Car purchase
• Car insurance/registration
• Depreciation (e.g. when you finance your car) 
• Parking
• Tolls
• Maintenance & repairs
• Vehicle tool kit

You can record these expenses in Part 11, Line 9 of Schedule C.  

Also check out: Free downloadable mileage log template for realtors 

Average realtor mileage claims 

Since realtors spend a lot of time on the road driving to different properties, they’ll likely rack up their vehicle mileage. The average realtor mileage is at least 3,300 miles annually, according to a survey by NAR. 

Fortunately, if you keep a mileage log, you can claim a percentage of your mileage. Now, it’s easier than ever to keep a mileage logbook. With Driversnote, you can automatically track your mileage whenever you’re on the go. 

There are two ways to track your mileage: The standard mileage rate or the actual expenses method. Each method will produce different results. So, you may want to try both methods to see which one gives you the highest deduction. 

Standard mileage rate method

This is a simplified way to calculate your business mileage. Take the total number of miles you drove for work, and multiply it by the IRS standard mileage rate. In 2026, the IRS mileage rate is $0.725 per mile. 

Actual expenses method

With this method, you can deduct a percentage of all your car-related expenses, known as your business-use percentage. Take the total vehicle expenses and multiply by the percentage you used the car for work. 

PATH Act for deducting vehicle expenses

The Protecting Americans from Tax Hikes (PATH) Act allows real estate agents to claim a larger portion of their vehicle expenses. This is done by applying a bonus depreciation of up to $20,000 in the first year of purchasing a new or used vehicle. 

However, the car must be used at least 50% of the time for business purposes. So, if you’re driving around town to meet up with potential buyers or sellers, conducting property tours, or attending business functions, these will all count towards work-related activities.

This realtor tax write off falls under Section 168(k) and is ideal for agents whose vehicles are predominantly used for client meetings, property showings, and open houses. 

For example, purchasing a $40,000 car and using it 60% for business could allow for a $20,000 first-year depreciation deduction, along with other vehicle expenses. 

Real estate professionals can combine the PATH Act benefits with other vehicle expenses to maximize their tax savings.