As a real estate agent, your days are filled with hustle–driving to client meetings, staging open houses, and sealing the deal on dream homes. And when tax season rolls around, all that hard work can translate into substantial tax savings if you know how to leverage the right tax write-offs. For 2025, U.S. real estate agents, who are often self-employed, have a wide range of deductions at their disposal. From mileage to marketing, this blog post uncovers the top tax write-offs you need to know, backed by the latest insights, to make the next tax season your most rewarding yet.
Why Tax Write-Offs Matter for Real Estate Agents
Real estate agents incur unique expenses essential to running a successful business. The IRS recognizes these as “ordinary and necessary” costs, allowing you to deduct them from your taxable income.
Whether you operate solo or as part of a brokerage, these deductions can help you claim thousands of dollars in tax savings. Still, navigating tax laws can be as tricky as closing a tough deal. That’s why we’ve compiled this list to help you.
Mileage: Your Biggest Money-Saver
If you are crisscrossing town to show properties or meet clients, your car is your office on wheels. For 2025, the IRS allows a standard mileage deduction of 70 cents per mile for business-related driving. This covers gas, maintenance, and depreciation, making it one of the most lucrative write-offs for agents.
Example: Drive 10,000 miles for business in 2025? That’s a $7,000 deduction.
Tip: Log every trip accurately using a mileage tracking app. Keep a digital or paper log to substantiate your claims in case of an audit.
Home Office Deductions: Turn Your Space into Tax Savings
If you work from a home office, you can deduct expenses for the space you use exclusively and regularly for business. The simplified option for 2025 allows you to claim $5 per square foot. You can claim deductions for up to 300 square feet, working out to a total of $1,500. Alternatively, you can deduct a percentage of your rent, utilities, and insurance based on the office’s share of your home.
Example: A 200-square-foot office yields a $1,000 deduction with the simplified method.
Tip: Ensure the space is used solely for business to avoid IRS scrutiny. Don’t claim this if you are also deducting desk fees at a brokerage for the same work.
Marketing and Advertising: Promote and Deduct
From social media ads to yard signs, marketing is the lifeblood of your business. The good news? You can deduct 100% of these costs (as ordinary and necessary expenses), including website hosting, SEO services, flyers, and promotional materials.
Example: Spend $2,000 on Google Ads and printed brochures? That could be $2,000 off your taxable income.
Tip: Keep receipts and invoices organized.
Your Business Dog: Work It, Write It Off
While pets are usually personal, your dog could be a deductible business expense if it truly has a genuine job for your real estate business. Its primary purpose must be ordinary, necessary, and reasonable, directly tied to generating income or protecting assets. If qualified, you could deduct purchase costs (depreciated), vet bills, food, supplies, and specialized training related to its job.
Note: Common roles include security/guard dogs (often needing to be taller than knee height).
Tip: Clearly document your dog’s business duties and separate costs if it’s also a family pet. Meticulous records are essential!
Business Meals: Dine and Deduct
Entertaining potential clients, like prospective buyers or sellers, can still lead to a deduction. While general entertainment expenses became largely non-deductible after 2017, business meals remain 50% deductible if they meet specific rules. For the meal to count, it must not be lavish or extravagant, you (or an employee) must be present, and a clear business discussion needs to occur with a current or potential business contact.
Example: A $40 lunch with a potential buyer nets a $20 deduction.
Tip: Always save receipts and precisely note the business purpose, date, and attendees for each meal to stay audit-ready.
Professional Fees and Memberships: Invest in Your Network
If you are a member of organizations like the National Association of Realtors (NAR), your membership fees are deductible for tax purposes. So are fees for legal or consulting services related to your business.
Note: A part of the dues is designated for lobbying efforts, which cannot be deducted. For instance, in 2025, with national NAR fees totaling $156 per member, 35% or $55 goes toward lobbying. The remaining $101 is eligible for deduction.
Tip: Separate business and personal accounts to easily track these expenses.
Education and Training: Sharpen Your Skills, Lower Taxes
Courses, seminars, and textbooks that enhance your real estate expertise are 100% deductible. Whether it’s a continuing education class or a marketing workshop, these investments pay off twice.
Example: A $300 course on digital marketing for real estate is fully deductible.
Tip: Ensure the training relates to your current profession, not a new career path.
Equipment and Supplies
Computers, tablets, lockboxes, and office supplies like paper and pens are deductible if used more than 50% for business. Items over $2,500 may need to be depreciated, but smaller purchases can be expensed immediately.
Example: A $1,000 laptop used exclusively for client communications could earn you a complete write-off.
Tip: Keep purchase records and document business use.
Bottom Line
As a real estate agent, maximizing your tax write-offs is essential to reducing taxable income and increasing your savings. These tax breaks can make a significant difference in your financial outcome. However, the complexities of tax laws can be tricky, and missing out on deductions can be costly. To ensure you’re taking full advantage of available write-offs and minimizing your tax burden, working with a tax expert who understands the nuances of real estate taxes is essential. Get the support you need. Don’t leave money on the table!
Claim Maximum Real Estate Tax Write-Offs With Tax Goddess
Tax Goddess has helped many real estate business owners claim substantial tax savings through the Strategic Tax Coaching (STC) program. Here’s the interesting part: clients in our STC program pay an average tax rate of just 6.92% annually!
On top of that, we have helped business owners claim over $2 BILLION in total tax savings. Book a FREE consultation with us today if you need help claiming maximum tax benefits in your real estate business.
