81 Tax Write-Offs for Real Estate Agents

Now is the time to be prepping for your 2022 taxes. We know it may not be the most exciting item on your holiday to-do list, but trust us, understanding your tax write off options are worth taking the time to make a list and check it twice!

As a part of our remote operations and management service for realtors, we’ve helped our clients gather the necessary info needed to submit to their CPA for tax preparation. After working alongside many quality accountants who specialize in the real estate space, we’ve seen how easily agents can miss out on all the tax deductions available!

We’ve pulled together some of the most surprising tax write-offs, and a killer tax prep checklist for realtors with 81 tax deductions. It’s important to know we are not tax professionals or licensed CPAs. Our recommendations for every agent is to partner with a licensed, high quality CPA to submit your taxes each year and to keep yourself educated on the latest tax strategies. The information below is based on our experience only.

Surprise, you could write that off!

1. Tesla Model X

You may have heard this HOT TOPIC trending from your favorite TikTok or Instagram real estate agent, but guess what! They may not be lying. There is enough of a crumb of truth that should get you talking to your CPA about this deduction. Ask your tax professional about the federal tax code that allows people to deduct up to $25,000 of a vehicle’s purchase price on their tax return. The catch? The vehicle purchased must weigh over 6,000 pounds, so maybe that 2022 Tesla Model X isn’t a crazy purchase after all!

2. Last minute contribution to a Roth or SEP IRA

Procrastinators – this deduction is for you! Here is why: If you haven’t been tax planning with your CPA this fall, you might look in December and realize you need more deductions to minimize your tax bill. Making an extra year end contribution to your Roth IRA or an SEP IRA is a great way to get in a last minute write-off. What’s even better, is the IRS allows you to contribute to both, not just one or the other. Have your CPA determine what amount of contribution could help alleviate some of that tax bill.

3. New Hires

Well, if you’re going to pay someone, it might as well stay in the family, right? You may have already known that there were tax advantages to hiring family, but did you know you can hire your children and give them a regular salary, or a lump sum wage at the end of the year? As long as you can prove they did legitimate work for your business and they are under 18, their earnings are not subject to social security or medicare taxes. These earnings can go to the child directly, or even into an account to pay for college in the future. Be sure to ask your CPA for the most up to date salary cap and regulations on this before submitting your 5 year old to payroll.

81 Tax Write-Offs for Real Estate Agents

Even if you aren’t looking to buy a Tesla, make a quick end of year contribution to your IRA or hire your child, there are plenty of other deductions available to you as a real estate agent. We’ve gathered a starter list of 81 tax deductions to look at with your CPA. Tax requirements and write-off policies can change over the years, so it is crucial that you are being advised yearly by a quality CPA to get the most out of these tax strategies.

Remember, we are not tax professionals or licensed CPAs. We currently work with real estate teams and their CPAs, helping gather documents and information they need to take advantage of as many write-offs as possible. This is a list we use as reference – we hope you find it helpful.

Happy tax prepping!

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