If you’re a real estate agent who is self-employed, getting tax deductions is probably important to you. Most real estate agents have quite a few out-of-pocket expenses related to their day-to-day work, but the good news is that some of these expenses are deductible. By taking advantage of them, you can reduce your taxable income and your overall tax liability.
As a real estate agent, you can deduct automobile expenses related to the number of qualified miles you drive throughout the year. This includes travel between different business locations as well as daily transportation expenses while traveling between your home and temporary work locations, such as the homes you are showing to clients. Keep in mind, though, that trips between your residence and your primary work location are not deductible; these are considered normal commuting expenses.
Real estate agents can also take deductions for certain communication expenses, such as a second telephone line. You can deduct the cost of basic service as well as toll calls on that line. Be aware, however, that this is only a deductible expense if the second line is used solely for business. You can also deduct toll calls on your primary line if they are related to your real estate work.
If you’re ready to learn more about the tax breaks available for real estate professionals, get in touch with Taxation Solutions, Inc. right away. We’ll help you determine the deductions you qualify for to maximize your tax savings and minimize the chance of developing tax problems.