12 Tax Write-Offs for Real Estate Agents in 2026

Self-employed real estate agents can deduct MLS dues, marketing and advertising, vehicle expenses, phone costs, continuing education, and many other business expenses. These deductions are crucial since most agents are independent contractors.

Deductible Expenses

MLS Dues & Board Fees

Line 27$500 — $2,000/yr

Marketing & Advertising

Line 8$2,000 — $15,000/yr

Vehicle / Mileage

Line 9$5,000 — $15,000/yr

Phone & Communication

Line 25$600 — $1,500/yr

Continuing Education

Line 27$200 — $1,500/yr

Lockboxes & Signs

Line 22$200 — $1,000/yr

Brokerage Fees & Splits

Line 10$1,000 — $10,000/yr

CRM & Technology

Line 18$300 — $3,000/yr

Business Insurance

Line 15$300 — $1,500/yr

Photography & Staging

Line 8$1,000 — $5,000/yr

Client Gifts & Closing Gifts

Line 27$200 — $2,000/yr

Home Office

Line 30$1,500 — $5,000/yr

Deduction Details

MLS Dues & Board Fees

Schedule C Line 27 · $500 — $2,000/yr

Multiple Listing Service (MLS) access fees, local and national realtor association dues, and board membership fees.

Marketing & Advertising

Schedule C Line 8 · $2,000 — $15,000/yr

Yard signs, flyers, mailers, Zillow/Realtor.com advertising, social media ads, Google ads, and print advertising for listings.

Vehicle / Mileage

Schedule C Line 9 · $5,000 — $15,000/yr

Driving to showings, open houses, client meetings, inspections, and closings. Real estate agents typically drive 10,000-20,000+ business miles per year.

Phone & Communication

Schedule C Line 25 · $600 — $1,500/yr

Business percentage of your cell phone plan. Many agents get a dedicated business line, which is 100% deductible.

Continuing Education

Schedule C Line 27 · $200 — $1,500/yr

License renewal CE courses, GRI, CRS, ABR designations, and other real estate certifications required or beneficial for your career.

Lockboxes & Signs

Schedule C Line 22 · $200 — $1,000/yr

Supra lockbox fees, yard signs, directional signs, open house signs, and riders for your listings.

Brokerage Fees & Splits

Schedule C Line 10 · $1,000 — $10,000/yr

Desk fees, transaction fees, franchise fees, and E&O insurance charges paid to your brokerage. Commission splits are not deductible — they reduce your gross income.

CRM & Technology

Schedule C Line 18 · $300 — $3,000/yr

CRM subscriptions (Follow Up Boss, kvCORE), transaction management (Dotloop, SkySlope), email marketing, and virtual tour software.

Business Insurance

Schedule C Line 15 · $300 — $1,500/yr

Errors and omissions (E&O) insurance, general liability, and any additional coverage beyond what your brokerage provides.

Photography & Staging

Schedule C Line 8 · $1,000 — $5,000/yr

Professional listing photos, drone photography, 3D virtual tours, video walkthroughs, and home staging for your listings.

Client Gifts & Closing Gifts

Schedule C Line 27 · $200 — $2,000/yr

Closing gifts for buyers and sellers. Limited to $25 per recipient per year for tax deduction purposes.

Home Office

Schedule C Line 30 · $1,500 — $5,000/yr

If you have a dedicated home office for your real estate business. Simplified method: $5/sq ft up to $1,500. Regular method: actual expenses.

General Freelancer Deductions

In addition to profession-specific write-offs, most self-employed individuals can claim these deductions:

Home Office Deduction

30 (Form 8829)

If you use a dedicated space in your home regularly and exclusively for business, you can deduct it. Simplified method: $5 per square foot, up to 300 sq ft ($1,500 max). Regular method: proportionate share of rent/mortgage, utilities, insurance, and repairs.

Self-Employment Tax Deduction

Form 1040, Line 15

You can deduct the employer-equivalent portion of self-employment tax (7.65% of net earnings) as an above-the-line deduction on your Form 1040.

Health Insurance Premiums

Form 1040, Line 17

Self-employed individuals can deduct 100% of health, dental, and vision insurance premiums for themselves, their spouse, and dependents.

Retirement Contributions

Form 1040, Line 16

Contributions to a SEP-IRA (up to 25% of net earnings), Solo 401(k), or SIMPLE IRA are deductible and reduce both income tax and self-employment tax.

Qualified Business Income (QBI) Deduction

Form 1040, Line 13

Most self-employed individuals can deduct up to 20% of qualified business income under Section 199A, subject to income limits and business type.

How TaxTidy Helps Real Estate Agents

TaxTidy automatically categorizes your receipts into the correct Schedule C lines, so you never miss a deduction. Snap a photo of any receipt and our AI instantly extracts the vendor, amount, and tax category — no manual data entry. At tax time, generate an audit-ready PDF report with all your real estate agent deductions organized and totaled.

Frequently Asked Questions

Are MLS dues tax-deductible for real estate agents?

Yes. MLS access fees, local realtor board dues, and National Association of Realtors (NAR) dues are all deductible on Schedule C Line 27 (Other expenses).

Can real estate agents deduct mileage?

Yes. Mileage to showings, open houses, client meetings, and property inspections is deductible. Keep a mileage log with date, destination, purpose, and miles driven. The standard mileage rate is 70¢/mile for 2025.

Are closing gifts to clients deductible?

Yes, but limited to $25 per recipient per year. A $200 closing gift basket only yields a $25 deduction per client. Consider lower-cost gifts that still show appreciation.

Can I deduct my commission split to the brokerage?

No. Commission splits are not a deduction — they reduce your gross income. Your 1099-NEC from the brokerage should already reflect only your share. Separate desk fees, transaction fees, and E&O charges are deductible on their respective lines.

TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.

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