Tax Savings for Agents

✅ 1. Business Expense Deductions

Most agents operate as self-employed, which means you can deduct ordinary and necessary business expenses, including:

• Marketing & Advertising

• Website costs

• Social media ads

• Business cards, signs, flyers

• Vehicle & Mileage

If you use your car for showings, prospecting, or meetings, you can deduct mileage or actual vehicle expenses.

• 2024 IRS standard mileage rate: 67 cents per mile
  (You choose whichever method gives you a bigger deduction.)

• Continuing Education & Training

• CE classes

• Coaching programs

• Certifications

• Conferences

• Client-related expenses

• Meals (generally 50% deductible)

• Gifts (limited to $25 per person per year)

✅ 2. Home Office Deduction

If you have a dedicated workspace at home used exclusively and regularly for business, you can deduct:

• A percentage of rent or mortgage interest

• Utilities

• Internet

• Insurance

• Maintenance

Two ways to calculate:

• Simplified method (square footage × IRS rate)

• Actual expenses (usually bigger but more work)

✅ 3. Health Insurance Premiums

If you’re self-employed, you can often deduct 100% of your health insurance premiums, including spouse and dependents.

✅ 4. Retirement Plan Tax Savings

Because agents are self-employed, you can choose plans with very high contribution limits:

• SEP IRA

• Solo 401(k)

Contributions reduce taxable income—sometimes by tens of thousands of dollars per year.

✅ 5. Equipment & Technology

You can deduct or depreciate:

• Laptops, tablets, phones

• Cameras, tripods, lighting

• CRM software

• MLS fees

• Lockboxes

Much of this may qualify for Section 179, which allows for immediate expensing instead of long-term depreciation.

✅ 6. Self-Employment Tax Write-Offs

Self-employed agents pay both employer and employee portions of Social Security & Medicare.
But you can deduct half of the self-employment tax, reducing overall taxable income.

✅ 7. LLC or S-Corp Structuring (When Appropriate)

Not a benefit for everyone, but:

• Forming an S-Corp can reduce self-employment taxes by splitting income into salary + distributions

• This can save thousands as income grows

Talk to a CPA before doing this—it’s not always worth it under $50K–$70K net income.

✅ 8. Real Estate Professional Status (For Investors)

If you also invest in rental properties, achieving Real Estate Professional Status (REPS) can unlock huge tax advantages:

• You can write off passive losses against active income

• Depreciation from rentals can significantly reduce taxable income

This is extremely powerful, but requires tracking hours and meeting strict IRS rules.

⚠️ Important Note

Tax law can vary by state, and IRS rules change—always consult a licensed CPA familiar with real estate agents.