10 Common Write-Offs Real Estate Agents Miss Every Year

You work incredibly hard for every commission check that comes your way. Between the late-night showings, weekend open houses, and client calls that seem to never end, you've earned every dollar. But here's the thing, are you actually keeping as much of that hard-earned income as you could be?

If you're like most real estate agents we work with at JOLT Strategies, the answer is probably no. And you're definitely not alone in this. We've seen agents hand over shoeboxes full of receipts (no judgment, we've all been there!), while others meticulously track everything in spreadsheets but still miss some of the biggest opportunities.

The truth is, as a 1099 independent contractor, you're running a business. And every legitimate business expense you can deduct directly reduces your taxable income. We're not talking about finding loopholes or getting creative with the rules, we're talking about claiming what's already rightfully yours.

Why These Deductions Matter More Than You Think

Let's put this in perspective. If you're in a 25% tax bracket and you miss $4,000 in deductions throughout the year, that's $1,000 in unnecessary taxes you're paying. That's a decent marketing budget, a weekend getaway, or even a few months of your favorite productivity software, money that could be working for you instead of going to the IRS.

The good news? Once you know what to look for, capturing these deductions becomes second nature. Let's dive into the ten write-offs we see agents miss most often.

The Top 10 Overlooked Real Estate Agent Tax Deductions

1. Vehicle Mileage and Transportation Costs

This is probably the biggest missed opportunity we see. Every single mile you drive for business purposes, showings, client meetings, broker visits, networking events, is deductible at 67 cents per mile for 2024.

Think about your typical week, driving to listing appointments, meeting buyers for showings, attending broker meetings, stopping by the office. These miles add up fast, and most agents severely underestimate how much they're actually driving for business.

The key is consistency in tracking. Use a mileage app like MileIQ or simply keep a log in your car. You don't need perfection, you just need a reasonable system that you actually use.

2. Home Office Expenses

If you have a dedicated space in your home that you use exclusively for your real estate business, you can deduct a portion of your home expenses. This includes rent or mortgage interest, utilities, internet, and even maintenance costs.

Many agents think they can't claim this because they spend most of their time out of the office. But if you have a space where you handle paperwork, make calls, and manage your business, it likely qualifies. You can use the simplified method (up to 300 square feet at $5 per square foot) or calculate the actual percentage of your home used for business.

3. Marketing and Advertising Expenses

Every dollar you spend promoting yourself, your listings, and your brand is deductible. This includes:

• Social media advertising and boosted posts

• Professional photography and videography

• Signs, flyers, and business cards

• Website hosting and maintenance

• Open house materials

• Client gifts (up to $25 per client per year)

If you're spending money to get your name out there or showcase properties, track those expenses. They're all legitimate business costs that reduce your taxable income.

4. Technology and Software Subscriptions

Your CRM, accounting software, Canva Pro, DocuSign, Zoom, cloud storage, these tools are essential for running your business efficiently. Every subscription that helps you serve clients better or manage your business more effectively is deductible.

Don't forget about your website hosting, email marketing platforms, or even that real estate photography editing software you use to make listings look their best.

5. Professional Development and Education

The real estate industry is constantly evolving, and staying current isn't just smart, it's often required. All your continuing education costs are deductible, including:

• Required license renewal courses

• Optional seminars and workshops

• Real estate conferences and networking events

• Coaching and training programs

• Industry publications and books

Every investment you make in improving your skills and knowledge pays double, first in better service to your clients, then as a tax deduction.

6. Cell Phone and Internet Bills

Let's be realistic, your phone is practically attached to your hand, and most of that usage is business-related. Clients calling about showings, texting photos of properties, staying connected while you're out with buyers, it's all business.

You can deduct the percentage of your phone and internet bills that relate to business use. If you use your phone 70% for business, deduct 70% of the bill. Keep it reasonable and be able to support your calculation if asked.

7. Brokerage and MLS Fees

Those monthly MLS fees, annual brokerage dues, desk fees, and transaction costs? They're all deductible. Your NAR membership, local realtor association dues, and any other professional memberships that help you do your job better, write them off.

These fees are often paid automatically or annually, making them easy to forget at tax time. Set up a simple system to track these recurring expenses throughout the year.

8. Business Meals and Entertainment

Taking a client to lunch to discuss their home search, grabbing coffee with a potential seller, or treating your referral partners to dinner, these business meals may be deductible.

The key is keeping good records. Note who you met with, what business was discussed, and keep the receipt. It doesn't have to be formal dining, even coffee meetings can count if they're business-related.

9. Professional Services

You probably work with several professionals throughout the year, photographers, stagers, attorneys, accountants, virtual assistants, transaction coordinators. All fees paid to these professionals for business purposes are deductible.

This also includes any business insurance premiums, accounting fees (yes, what you pay JOLT is deductible!), and legal fees related to your real estate business.

10. Office Supplies and Equipment

From business cards to clipboards, pens to portable signs, lockboxes to showing supplies, all the physical items you need to run your business are deductible. This includes office equipment like printers, computers (or the business portion), and even that comfortable chair for your home office.

Don't overlook the small stuff. Those thank-you cards, folders for client packets, and even the mints you keep in your car for showings all add up.

Making Deduction Tracking Actually Work

Here's the thing about maximizing your tax deductions, the system matters more than perfection. You don't need to track every penny with mathematical precision, but you do need consistency.

Set up a simple system that works for your lifestyle. Some agents love spreadsheets, others prefer apps, and some do best with a dedicated business credit card and simple categorization. The best system is the one you'll actually use.

Review quarterly, not annually. Spend 30 minutes every three months reviewing your expenses and categorizing anything you might have missed. This prevents the overwhelming scramble at tax time and ensures you don't forget about that conference you attended in March when it's time to file in April.

When in doubt, ask. Tax laws change, and every situation is unique. Working with a professional who understands the real estate industry can help you identify opportunities you might miss and ensure you're maximizing your deductions safely and legally.

Keep More of What You've Earned

You work too hard to leave money on the table. These deductions aren't about gaming the system, they're about recognizing that you're running a business and claiming the expenses that come with that business.

At JOLT Strategies, we help real estate agents stop overpaying the IRS by building simple, sustainable systems for tracking deductible expenses. We'll help you identify opportunities you might be missing, set up tools to capture expenses automatically, and review your situation quarterly so nothing falls through the cracks.

Your success deserves to be rewarded, not penalized. Let's make sure you're keeping every dollar you can legally keep.

Ready to stop leaving money on the table? Contact JOLT Strategies today to schedule your Real Estate Tax Strategy Review and start maximizing your deductions the right way.