Real estate agents typically operate as self-employed independent contractors, which means most business expenses are deductible. The key is tracking everything properly and keeping documentation that holds up if you’re ever questioned.

Vehicle expenses are usually the largest deduction for agents. You’re driving to showings, open houses, client meetings, and inspections constantly. You can either deduct actual vehicle costs or use the standard mileage rate, which is 67 cents per mile for 2024. Most agents find the mileage method simpler, but you need to log every business mile with the date, destination, and purpose. Personal driving doesn’t count, so commuting from home to your brokerage office isn’t deductible.

Marketing and advertising adds up quickly. Yard signs, lockboxes, professional photography, virtual tours, staging costs, drone footage, print materials, website hosting, social media ads, and listing platform fees are all deductible. The money you spend getting your name and listings in front of buyers and sellers is a business expense.

Brokerage fees and commission splits are deductible. Whether you pay a desk fee, franchise fee, or percentage split to your brokerage, that’s a business expense. Same with transaction coordinator fees and any E&O insurance your brokerage requires you to carry.

MLS dues and association fees are fully deductible. Your local realtor association membership, Utah state association dues, NAR membership, and MLS access fees all count. Real estate professionals in the Wasatch Front area often overlook how much these recurring fees add up over a year.

Licensing and continuing education costs are deductible. The fees to maintain your Utah real estate license, CE courses, and any specialized certifications you pursue are all legitimate write-offs.

Technology expenses including your cell phone, computer, tablet, CRM software, email marketing platforms, and electronic signature services are deductible. If you use your phone 60% for business, 60% of the cost and monthly bill is deductible. Be honest about the split.

Home office deduction applies if you have a dedicated space used exclusively for business. You can deduct a portion of your rent or mortgage interest, utilities, and home insurance based on the square footage of your office. Many agents work from home between showings, making this a valuable deduction when set up correctly.

Professional services like your accountant and bookkeeper are deductible. So are coaching programs and training you invest in for your business.

Client gifts are deductible up to $25 per recipient per year. That closing gift you give every buyer maxes out at $25 for tax purposes, even if you spent $100. Business meals with clients are 50% deductible when you’re discussing business. Keep receipts and note who you met with and what you discussed.

What’s not deductible includes clothing even if you only wear it for showings, fines and penalties, and personal expenses run through your business account. The deductions only work if you can prove them. Use a separate business bank account and credit card, track mileage with an app, and keep your receipts organized throughout the year.