With interest rates showing signs of improvement, real estate business is beginning to resurge, but not out of the woods yet. Of course, not everyone came out of the housing sector upset unscathed. To add salt to the wound, tax season is upon us. Well; brace yourself for it, and garner some legal tricks that are poised to save you some greens this fiscal period.
The good news is that, as a real estate agent, you are entitled to a raft of tax deductions. That should be a sweet song to your ear. Taking a jab at these deductions could really improve your bottom line.
Without much ado, here are the top, must-know tax deductions for real estate agents.
Mileage deduction is a perhaps one of the most claimed tax deduction by real estate agents. What is mileage deduction? It’s a deduction that ingrains all you car and truck expenses. Do you wish you could be paid for all of those showings you drive your clients to – yet they never buy? You can! You can log those miles, and they are tax deductible!
If you’re a keen bookkeeper-type, you can keep track vehicle expenses and claim an annual deduction against the figure. This includes: oil changes, carwashes, repairs, and gas.
For the more laid-back folks, there is an ingenious standard mileage rate devised by IRS. The standard rate comes at a small price, though: you must maintain an accurate log of all of the miles you drive for business.
Office rent and utility cost are prime examples of office expenses that are tax deductible. For a renter, this deductible is a huge sigh of relief as monthly rent is a significant cost that is typically not deductible.
This strategic deduction aggregates all your business travel expenses. If your realty business involves a lot of travels, this deductible is a slice of heaven. It covers your flight, hotel, and transport costs. Even better, up to half of your business meal expenses can be deducted.
You’ll be glad to know that you can deduct charges that you incur to get services from accountants, lawyers, attorneys, and other specialty professionals.
Heck, you can DEDUCT up to 100% of your medical coverage, if you are self-employed real estate agent. Otherwise, you are entitled to a deduction on all insurance against business liability and property.
Depreciation on business property – including cars, furniture, electronic, and much more – is also deductible.
These are just but a few tax deductions that are bound to benefit your real estate business. For a comprehensive list of all tax deductions you are entitled to, you may need to seek help from a tax expert or attorney.