Tax guide for real estate agents

Tax deductions for real estate agents

Mileage between showings is usually the biggest one, but agents have plenty of other costs worth tracking.

Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides

Based on IRS Publication 334, the Instructions for Schedule C, and IRS Publication 463.

Common write-offs

A cost generally has to be ordinary and necessary for your work, and if you also use something personally, only the business share counts.

Common business deductions for real estate agents
Expense	How it's usually handled
Mileage to showings and listings	Standard mileage rate or actual car costs
MLS and association dues	Fees you pay to practice
License renewal and continuing education	Costs to maintain your current license
Signs, flyers, and online ads	Advertising
Brokerage desk fees and commission splits	Business expenses, if they're included in the income you report
Errors and omissions insurance	Deductible as a business insurance cost
Client gifts	Limited to $25 per person per year

The $25 limit on closing gifts

The IRS limits business gifts to $25 per person per year, so a $200 closing gift is only partly deductible. Keep a list of who received what.

Keep the proof as you go

Keep receipts, invoices, and bank records for everything you deduct, and log business miles as you drive them. IRS Publication 463 says you can't deduct amounts you approximate or estimate. Cadus keeps receipts, bank transactions, and mileage together, sorted into Schedule C categories.

Recordkeeping checklist

Save a receipt or invoice for every business purchase.

Log business miles as you drive them.

Separate business and personal use of shared items.

Ask a tax professional about large equipment purchases.

Free tools for this

Calculator

1099 and Self-Employment Tax Calculator

Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.

Calculator

Mileage Deduction Calculator

Estimate the standard mileage deduction for U.S. business driving, then use Cadus to keep mileage, expenses, receipts, invoices, and tax reports organized.

Template

Business Expense Log Template

Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.

Template

Receipt Tracker Template

Use this receipt tracker to see which purchases have proof, which receipts are missing, and which items still need review.

Official sources

IRS Publication 334 IRS Instructions for Schedule C IRS Publication 463

Related guides

Self-employed tax guide

Self-Employed Tax Deductions

What you can write off when you're self-employed: mileage, home office, phone, supplies, meals, insurance, and more, with the IRS rules and limits.

Schedule C education

Schedule C Expense Categories

Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.

Estimated tax guide

Quarterly Estimated Taxes

2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.

Real Estate Agents Deductions FAQ

Are real estate agents self-employed?

Qualified real estate agents are generally treated as self-employed for federal tax purposes when substantially all of their pay is tied to sales and they have a written contract saying so.

Can I deduct closing gifts?

Up to $25 per person per year.

Cadus educational content is not tax, legal, or accounting advice. Tax rules can change, and individual facts matter. Review official guidance or speak with a qualified tax professional before filing.