Written by Maryam Ajorloo, CPA · Reviewed by Behdad Karimi Dermeni, CPA
You closed the deals, drove to the showings, paid for the signs and the coffees and the closing gifts. Now it is tax season, and all of that is sitting in a mix of card statements and a glovebox full of receipts. The good news: most of what you spent to run your real estate business is deductible, and this guide walks through exactly what real estate agents can write off in 2026.
Tax write-offs for real estate agents cover almost any expense that is ordinary and necessary for your work, from mileage and your home office to MLS dues, brokerage fees, marketing, and a large chunk of your own health insurance and retirement savings. Because most agents are treated as self-employed, you report it all on Schedule C, and every legitimate expense you track lowers the income you pay tax on.
Instead of digging through a shoebox every April, connect your bank and let an AI Bookkeeper sort your expenses as they happen, so tax season is mostly done before it starts.
The one rule behind every real estate agent write-off
Before the list, here is the rule that decides everything. The IRS lets you deduct expenses that are ordinary and necessary for your business (Internal Revenue Code Section 162). Ordinary means the expense is common and accepted for a real estate agent. Necessary means it is helpful and appropriate for the work you do. A lockbox, a listing photographer, and a tank of gas on the way to an open house all clear that bar. A new dining set for your own kitchen does not.
There is a second rule worth knowing, because it explains why you get to claim any of this in the first place. Most licensed real estate agents are statutory nonemployees under IRC Section 3508, which means the IRS treats you as self-employed even though you hang your license with a brokerage. You are effectively running your own business. That is why your commission income lands on a 1099, why you file a Schedule C, and why tracking expenses matters so much: nobody is withholding taxes for you, so your write-offs are what keep the bill reasonable.
The write-offs almost every real estate agent can claim
These are the everyday expenses that show up for nearly every agent. Track them all year and they add up fast.
Vehicle and mileage. For most agents this is the single biggest write-off, because you live in your car. You can use the standard mileage rate or track actual costs (gas, insurance, repairs, depreciation), then multiply by your business-use percentage. The 2026 standard rate is a split year: 72.5 cents per mile from January 1 to June 30, and 76 cents per mile from July 1 to December 31, after the IRS raised it mid-year. Log the miles from your home office to showings, closings, and client meetings, and keep it separate from personal driving.
Home office. If you use part of your home regularly and exclusively for your real estate work, you can deduct it. The simplified method is $5 per square foot, up to 300 square feet, for a maximum of $1,500. The actual-expense method takes the business-use percentage of your rent or mortgage interest, utilities, and insurance, which is often larger. The desk in the corner of the guest room counts. The kitchen table where the family also eats dinner does not.
Brokerage fees, desk fees, and commission splits. The cut your brokerage keeps, plus desk fees, franchise fees, and per-transaction fees, are all deductible business expenses. These are easy to forget because they come out before the commission ever hits your account, but they are real costs of doing business.
MLS dues, association fees, and licensing. Your MLS access, local and state board dues, National Association of Realtors membership, license renewal, and lockbox or key fees (SentriLock, Supra) are all deductible. If it keeps you licensed and in the system, it counts.
Errors and omissions (E&O) and business insurance. E&O insurance is often required by your broker, and it is fully deductible, along with general liability or a business policy you carry.
Marketing and advertising. This is where agents spend, and nearly all of it is deductible: listing photography and video, drone shots, staging, yard signs, direct mail, business cards, your website, and online ads on Google, Facebook, and Instagram. Farming a neighborhood with postcards is a marketing expense, not a hobby.
Client and closing gifts (mind the $25 cap). Closing gifts are a lovely tradition and a partial deduction. The IRS caps business gifts at $25 per recipient per year, so the $150 bottle of wine and the engraved cutting board are deductible only up to $25 for that client. Incidental costs like engraving and shipping do not count against the limit, and branded swag under $4 is separate. It surprises a lot of agents, so plan gifts with the cap in mind.
Continuing education, coaching, and designations. Continuing education to keep your license, coaching programs, and designation courses (CRS, ABR, and the like) are deductible when they maintain or improve the skills of your existing business. A course to break into a brand-new field is not.
Software, apps, and subscriptions. Your CRM, transaction management, e-signature tools (DocuSign, dotloop), scheduling apps, and design software are all deductible. If you pay monthly to run your business, write it off.
Phone and internet. The business-use portion of your cell phone and home internet is deductible. If your phone is 80% business, deduct 80%. Being honest about the split is the whole game here.
Meals. Business meals with clients, referral partners, or your team are 50% deductible in 2026. Keep a quick note of who you met and why. One caution: entertainment, like game tickets or a round of golf, is not deductible at all, even if you talk shop the whole time.
The bigger write-offs agents overlook
The list above is the obvious stuff. These are the deductions that quietly save the most and that most agents never claim, because they do not show up on a card statement. They live on your tax return, not in your expense tracker.
The Qualified Business Income (QBI) deduction. If you qualify, you can deduct up to 20% of your qualified business income on top of your regular expenses. The One Big Beautiful Bill Act made this permanent at 20%. Real estate agent commission income is generally not treated as a "specified service" business, so many agents can still claim it even at higher income levels where other professionals get phased out. This one is worth a conversation with your accountant.
Self-employed health insurance. If you are not eligible for coverage through a spouse's employer, you can deduct 100% of your health, dental, and vision premiums for yourself, your spouse, and your dependents as an above-the-line deduction. For a self-employed agent buying their own coverage, this is often thousands of dollars.
Retirement contributions. A SEP-IRA or Solo 401(k) lets you set aside a large share of your commission income for retirement and deduct the contribution. It is one of the few ways to lower this year's tax bill and pay your future self at the same time.
Half of your self-employment tax. As a self-employed agent you pay the full 15.3% self-employment tax (Social Security and Medicare), but you get to deduct the employer-equivalent half. It happens on your return automatically when your books are right.
Section 179 and bonus depreciation on a vehicle or equipment. If you buy a qualifying business vehicle or larger equipment, you may be able to write off a big portion in year one rather than over time. The rules on heavier vehicles and business-use percentage are specific, so confirm the details before you buy.
Startup costs. Newly licensed? You can deduct up to $5,000 of startup costs (your pre-license course, initial marketing, setup) in your first year of business.
What you can't write off
A few things trip agents up every year:
Everyday clothing and grooming. The sharp blazer, the haircut, the gym membership: not deductible, even though you are the product. Clothing is only deductible if it is a uniform not suitable for everyday wear, which a nice suit is not.
Commuting to a fixed office. Driving from home to a regular office is personal. The good news for agents is that trips from a qualifying home office to showings and client meetings are usually business miles, not commuting.
Entertainment. Client outings to games or concerts are no longer deductible, even with business discussion.
Gifts above $25 per client, and personal expenses run through the business. The extra $125 on that closing gift is on you.
Where real estate agents actually claim these deductions
As a statutory nonemployee, you report your commission income and expenses on Schedule C (Form 1040), and you pay self-employment tax on the profit via Schedule SE. The above-the-line deductions (self-employed health insurance, retirement, half of SE tax) go on Schedule 1, not Schedule C. If you have formed an S corporation for your real estate business, the mechanics shift to Form 1120-S and a reasonable salary.
The details of which line each deduction sits on can get involved. Our guide to small business tax deductions covers the by-structure breakdown in depth, so this guide stays focused on what actually moves the needle for agents.
How to capture every write-off (without the shoebox)
You cannot deduct what you cannot document, and the difference between a big refund and a shrug is usually just record-keeping. Here is a system that runs itself.
Separate business and personal. Open a dedicated business checking account and card, and run every real estate expense through it. This one step removes most of the tax-season guesswork and makes your books defensible if the IRS ever asks.
Connect your accounts. Link your business bank and card so every transaction imports automatically. No more exporting spreadsheets or typing in totals from memory in April.
Save receipts as you go. Snap or forward receipts the moment you get them into the Smart Shoebox (your receipt inbox), so the $25 gift, the sign order, and the closing lunch are all matched to the right transaction.
Categorize continuously. Let the AI Bookkeeper sort each transaction into the right category throughout the year. There is very little left for you to do, and when tax season arrives your write-offs are already organized.
This is exactly what ReInvestWealth's AI Bookkeeper handles for you: see how the AI Bookkeeper works and stop doing this by hand.
A few habits that keep it clean
Keep a mileage log. A simple app or note that captures date, destination, and purpose is enough, and it is the record the IRS wants if it ever asks about your car.
Review your books monthly, not once a year. Ten minutes a month beats a lost weekend in April. If you fell behind, here is how to catch up on months of bookkeeping fast.
Let the software do the sorting. Real estate agents are among the 3,000+ entrepreneurs who run their books on ReInvestWealth (rated 4.8 on Capterra), so the categorizing happens in the background while you sell.
Frequently asked questions
What can real estate agents write off on their taxes?
Real estate agents can write off vehicle mileage, a home office, MLS and association dues, brokerage and desk fees, E&O insurance, marketing and advertising, software, phone and internet, continuing education, and business meals (at 50%). Many can also claim the Qualified Business Income deduction, self-employed health insurance, and retirement contributions.
Can I write off my car as a real estate agent?
Yes. You can deduct business driving using the standard mileage rate (72.5 cents per mile for the first half of 2026 and 76 cents for the second half) or the actual costs of operating your car times your business-use percentage. You cannot deduct personal driving or a regular commute, so keep a mileage log that separates the two.
Are closing gifts to clients deductible?
Yes, but only up to $25 per recipient per year. If you give a client a $200 closing gift, you can deduct $25 of it. Incidental costs like engraving and shipping do not count toward the limit.
Do I need receipts for every write-off?
Keep records for everything, and receipts for larger purchases. A bank or card statement shows that money moved, but a receipt shows what it was for, which is what supports the deduction. Saving receipts digitally as you go makes this painless.
Do real estate agents pay self-employment tax?
Usually yes. Most agents are statutory nonemployees, so you pay the 15.3% self-employment tax on your net profit. You do get to deduct the employer-equivalent half, and your business write-offs reduce the profit that tax is calculated on.
Start tax season with the write-offs already sorted
Every mile, sign, and subscription you track is money you keep. The hard part was never knowing what to deduct, it was keeping the records straight while you were busy selling homes.
Connect your bank, forward your receipts, and let the AI Bookkeeper categorize everything into clean, tax-ready books. Start free for 30 days and walk into tax season with your write-offs already organized.
A note from our CPAs: This guide is educational and covers the general rules for real estate agents in the United States. Tax situations vary, so for advice on your specific circumstances, talk to your accountant. (If they use ReInvestWealth, they will already have clean books to work from.)
Written by Maryam Ajorloo, CPA
Maryam Ajorloo is the co-founder of ReInvestWealth and a CPA who specializes in small business tax, write-offs, and everyday bookkeeping. She helps entrepreneurs keep clean, audit-ready books and make sense of write-offs, filing deadlines, and the numbers behind their business. Read more · Connect on LinkedIn
Reviewed by Behdad Karimi Dermeni, CPA
Co-founder of ReInvestWealth and a founding community builder at Stripe. Behdad built ReInvestWealth to give smart, busy entrepreneurs CPA-level accounting without the CPA-level price tag. Read more · Connect on LinkedIn
