Being a real estate agent comes with its own set of unique expenses that can add up quickly. With costs such as marketing, transportation, and professional development, it can be challenging to keep your budget in check. But what many agents don't realize is that they may be missing out on key write-offs that could significantly lower their tax bill. In this blog, we want to share some important write-offs that realtors tend to forget about, so you can maximize your deductions and keep more of your hard-earned money. So let's take a closer look and make sure you're not leaving any money on the table!
#1 Home office expenses: If you work from home, you may be able to deduct a portion of your rent or mortgage, utilities, internet, and other expenses related to maintaining a home office.
#2 Self-employment taxes: As a self-employed individual, you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. These taxes can add up, so it's important to keep track of them and deduct them from your taxable income.
#3 Health insurance premiums: If you pay for your own health insurance, you may be able to deduct the cost of your premiums from your taxable income.
#4 Business-related travel expenses: If you travel for business purposes, you may be able to deduct expenses such as airfare, hotel accommodations, and meals.
#5 Retirement contributions: If you contribute to a retirement plan, such as an Individual Retirement Account (IRA) or a Simplified Employee Pension (SEP) plan, you may be able to deduct your contributions from your taxable income.
In conclusion, as a real estate agent, it's crucial to stay on top of your expenses and take advantage of all the write-offs available to you. By claiming every deduction applicable, you can significantly reduce your taxable income and keep more of your hard-earned money.
For a full list of tax deductions you can visit this blog post here - Realtor tax Deductions: List for 2023.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.