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Checklist of Tax Deductions for a Real Estate Broker

According to the Bureau of Labor Statistics, a real estate broker is an agent who is licensed to own and operate a real estate office. As a business owner, a broker is offered several tax deductions. Keeping clear, precise records is important to ensure all of the available deductions are received.

Vehicle Expense

One of the largest expenses claimed by a real estate broker is his vehicle expense. This includes the cost of the vehicle repairs, license fees, insurance and parking fees. Also, interest from the vehicle and lease cost is tax deductible. Mileage is an important deduction for brokers as well. The Internal Revenue Service has rules that regulate the maximum amount of mileage cost a broker can deduct per year.

Personal Property

Personal property expenses incurred by a real estate broker may be deducted up to $20,000. This includes supplies such as computers, telephones, furniture and office supplies. The full amount of the purchase price of the property may be deducted eliminating the need to depreciate the cost. Only property associated with the business may be deducted.


Travel expenses are broken down into anything that is an expense while traveling away from home for business purpose. They include lodging, baggage, meals and tips while away from home. All receipts should show a date and time for tax purposes. It is a good idea to keep a log showing the event, location and exact amount spent as well. Up to 50 percent of money spent for meals and entertainment can be deducted if it is not during travel. These are considered entertainment costs.


Fees associated with licensing and education expenses are tax deductible for a broker. These include continuing education classes, a business license and a real estate broker license. Fees for real estate association dues and Chamber of Commerce dues are also deductible. Advertising fees are deductible whether they are for print or online advertising. Also, gifts to clients are deducted up to $25 each. Business cards and open house costs are also tax deductible.

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