As a realtor, you are likely to spend a significant amount of time on the road, showing properties to clients and attending meetings and open houses. Because of this, it is important to track your business-driven miles in order to claim them as a tax deduction. Here are some reasons why realtors should be tracking their business-driven miles:
- Tax savings: One of the main reasons why realtors should track their business-driven miles is for tax savings. In the United States, the Internal Revenue Service (IRS) allows business owners to claim a tax deduction for business-related mileage. By tracking your business-driven miles, you can claim this deduction on your tax return and potentially save money on your taxes.
- Record-keeping: Tracking your business-driven miles can also help with record-keeping and accounting. By keeping track of your mileage, you can provide accurate and up-to-date records of your business expenses, which can be helpful for tax preparation and financial planning.
- Improved efficiency: Tracking your business-driven miles can also help you improve the efficiency of your business. By knowing how much you are driving for work, you can better plan your routes and optimize your schedule to save time and fuel.
Overall, tracking your business-driven miles as a realtor can provide many benefits, including tax savings, improved record-keeping, and efficiency. By keeping track of your mileage, you can claim the appropriate tax deductions, provide accurate records of your business expenses, and optimize your business operations.