Realtor Tax Deductions: The 2026 Guide

You're a business now — act like one

The moment a commission check from your broker lands on a 1099, the IRS puts you in the same category as any small business owner. That means self-employment tax, quarterly estimated payments — and the upside: you can deduct ordinary and necessary business expenses against what you earn.

Most realtors don't think of themselves as businesses, so they don't keep business records. Between showings, listing appointments, open houses, and closings, the costs pile up quietly — and the ones that never get recorded never get deducted.

The deductions most realtors can claim

1. Mileage — usually your biggest deduction

Every drive to a showing, listing appointment, inspection, open house, or closing counts at the IRS standard rate. Agents easily run 10,000+ business miles a year, and the IRS expects a contemporaneous log — not a calendar reconstruction in March.

2. MLS, board, and association dues

Local MLS fees, NAR dues, and state association fees are ordinary business expenses.

3. Marketing and listing costs

Photography, yard signs, lockbox fees, online ads, staging consultations, and drone shots — advertising is Schedule C line 8.

4. License, E&O, and continuing education

License renewals, CE courses, and errors-and-omissions insurance all count.

5. Client gifts and closing costs

Gifts are deductible up to $25 per client per year — document who got what.

6. Desk and brokerage fees

Desk rent, franchise fees, and transaction fees your brokerage deducts from your check.

What the IRS actually wants to see

Deductions aren't denied because they weren't real — they're denied because they weren't documented. The standard: a receipt or bank record for expenses, a mileage log with business purpose, and records made close to when the expense happened. A mileage log kept as it happens is worth far more than one reconstructed in April — the IRS knows the difference.

That's the workflow DeductionDog was built around: capture receipts by photo or by scanning your email, log drives automatically, then export the year as an accountant-ready package — every item mapped to its Schedule C line.

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DeductionDog provides record-keeping software, not tax advice. Deduction eligibility depends on your specific facts — when in doubt, talk to a qualified tax professional.