Taxes are one of two things you’re certain to have to deal with in life, and it’s only mildly better than the other certainty.
But all is not lost. Here are 8 tax reductions you should keep in mind for the IRS. As always, check with a qualified tax professional before making any of the following claims, they all have their own restrictions.
- Your Car
Your car is half your life when you’re a real estate agent. Getting to and from work can be a big deduction, as can getting around to different sites. The standard mileage rate is 56 cents per mile, and you can usually claim a goodly number of miles if you use your own car for work at the level agents use.
- Business Travel
You can usually claim a deduction for expenses related to doing business out of town. Airfare and hotels can be deducted, in part, as can conference fees, workshop tickets, and car rentals
- Meals and Entertainment
You can only claim half of your meal or entertainment expenditures related to business deals, but if you entertain a lot of clients you can save yourself a substantial amount on taxes. Keep in mind, you need to have a serious discussion about business in order t claim meals and entertainment as a write-off
Dedicated business insurance, for your business property or a liability plan, can be deducted. If you work from home, a portion of your office can be claimed. And if you buy your own health insurance, all of it can be deducted from your taxes.
Keep track of every little thing you buy for the office. Pens, staple removers, flash drives, stamps. Whatever. It’s all deductible.
- Office Operating Expenses
You can write off much of the cost of running your business in the form of internet service, utilities, and rent: If you rent commercial space, you can deduct a higher percentage of these expenses (usually all of them), whereas you may deduct smaller portions if you work from your home.
The IRS recognizes depreciation of many valuable office items, like computers, phones, furniture, and machines. How much you can claim for depreciation has a lot of variables, so make sure to talk to a tax pro before taking a shot at these yourself.
- Legal and Professional Services
If you use an attorney, accountant, or consultant to help you run your business, you can usually write off the cost of doing so on your taxes. Other professional services can be deducted too, if they assist with your business. Consult a tax professional (which could be written off as well).