Most of the time being your own boss is amazing, but come April, it can be easy to start weighing the pros and cons of a salaried position. All those commissions and expenses you racked up over the year need to be gathered, tallied, and taxed. On the plus side, as a small business owner, you only pay taxes on your net income. So, check with your accountant to make sure you’re getting all your eligible deductions, but here are some examples to start you off.
There are two ways you can figure your vehicle deduction. You can either keep a log of business mileage and apply the per mile credit or keep receipts for your gas, car washes, repairs, maintenance, etc.
All the money you spent getting your name and your listings in front of the public eye can be written off. Figure out how much you spent last year on business cards, MLS dues, property flyers, billboards, websites, web design, and online advertising.
Keeping up to date on the latest real estate news and trends is a very important part of the business. Most certification classes, business books, seminars, and webinars that help you perform as an agent are tax deductible.
Did you make it out of town for any expos, conferences, or trade shows last year? If so and if the event you attended was the main focus of your trip, you can deduct your room, transportation, baggage charges, and half the cost of your meals.
Some business related entertainment expenses can also be taken into account. Did you pick up the tab for lunch with one of your past clients in hopes of getting a referral? Part of that meal can be deducted!
Communication is very important in real estate. As such, your work cell, work laptop, work tablet, answering service, office internet bill, and office phone bills are deductible. Repairs for your work devices are also deductible.
Office equipment can be deducted too! Your desk, filing cabinets, printer, fax machine, etc. Can be written off before you do your taxes as long as they are used exclusively for your business. If you have a home office, that can often be deducted as well.
We are marketing experts, so be sure to check with your certified tax accountant to verify your eligibility and make sure you don’t miss out on any additional deductions. If you are looking for great, tax-deductible marketing opportunities, call us. If you need help filling out a 1040, call your accountant.