Wading Through Tax Day: Don’t Go It Alone!

As a real estate professional, you are most likely paid via commissions on sales, so your system of record-keeping and documentation of expenses needs to be highly organized and accurate. However, even the best of records will only work for you if you know the current changes in tax law on any given year. To prepare for the recent tax law changes, experts advise that you work with a tax professional to ensure your filing is completed correctly and that you are receiving full benefits.  You may ask your tax professional about the PATH Act of 2015 which might provide additional benefits to business-related purchases.

Here is a quick list from Turbo Tax that may apply to you as a real estate professional. Be sure to consult with your tax preparer regarding these suggested items. Turbo Tax considers these need-to-know allowable expense deductions:

  • Marketing and sales, open house signs, web site development, business cards and mailers
  • Real estate coaching, training and education costs
  • Real estate licensing and renewal fees
  • Association dues, MLS fees, and brokerage desk fees
  • Automobile maintenance and repairs, mileage, gas, parking, insurance and lease costs
  • Home office expenses
  • Gifts (a $25 deduction limit)

This list can serve as a starter with your tax preparer.  The National Association of REALTORS® web site is also filled with information about the new tax laws and an overview of its influence through advocacy regarding laws protecting your business and homeownership.

Additionally, it is a good idea to refer clients’ tax questions to a qualified tax professional. Tax laws can be complicated and you want to be sure they receive accurate information.



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