Can I deduct commission splits paid to my brokerage?

No — commission splits are not a deductible expense because you report only your net commission (after the split) as income, not the gross amount. Check your 1099-MISC carefully.

Is staging a property deductible?

Staging costs you pay for (rental furniture, staging service fees) to sell a client's property are deductible. Furniture you purchase and keep is a capital asset, not an immediate deduction.

Can I deduct gifts to clients?

Yes, but only up to $25 per client per year under IRS rules. Closing gifts over $25 are only partially deductible.

What IRS form do realtors use?

Independent contractor real estate agents file Schedule C (Profit or Loss from Business) attached to their Form 1040. Agents who are incorporated use a business return instead.

Schedule C · Self-Employed

Tax Write-Offs for Realtors

Licensed real estate agents who work as independent contractors — not W-2 employees of a brokerage — file Schedule C and can deduct the full cost of running their business. From MLS fees to mileage driven showing properties, the deductions add up fast.

Avg. annual savings$5,800

Track My Realtor Write-Offs — $14/mo

Top 6 Tax Write-Offs for Realtors

Vehicle Mileage

100% deductible

Miles driven to show properties, meet clients, attend closings, and run business errands. At the 2025 IRS rate of $0.70/mile, a realtor who drives 15,000 business miles saves $10,500 in deductions alone.

Schedule C, Line 9

MLS Fees & NAR Dues

100% deductible

Monthly or annual MLS subscription fees, National Association of Realtors dues, and local board dues. These are ordinary and necessary business expenses for any licensed agent.

Schedule C, Line 15

Marketing & Advertising

100% deductible

Zillow Premier Agent fees, Realtor.com advertising, Facebook/Instagram ads for listings, business cards, signage, mailers, and any promotional materials for open houses.

Schedule C, Line 8

Home Office

100% deductible

A dedicated space used to handle paperwork, calls, CRM work, and client communication. Deductible even if your brokerage has an office, as long as you regularly work from home.

Schedule C, Line 30

CRM Software & Tech

100% deductible

Follow Up Boss, DocuSign, BombBomb, Dotloop, Canva for Real Estate, and any software subscriptions used to manage clients, sign documents, and market listings.

Schedule C, Line 18

License Renewal & CE Credits

100% deductible

State license renewal fees, continuing education courses required to maintain your license, and professional development classes directly related to real estate.

Schedule C, Line 23

Common Mistakes to Avoid

Not keeping a mileage log — the IRS requires contemporaneous records showing date, destination, and business purpose for every trip.
Deducting staging furniture you purchased and kept — only rental or temporary staging costs qualify.
Forgetting to deduct E&O (errors and omissions) insurance premiums, which are 100% deductible.
Missing the desk fees or transaction fees paid to your brokerage, which are deductible on Line 26.

Recordkeeping Tips

Use a mileage tracking app (MileIQ or Everlance) and log every business trip the day it happens — a retroactive estimate won't hold up.
Keep a digital folder of all MLS and NAR invoices; these renew annually and are easy to miss.
Save screenshots of every Zillow or Facebook Ad spend from the platform dashboards in addition to credit card statements.
Request an annual summary of desk fees and transaction fees from your brokerage each January.

Frequently Asked Questions

Related Professions

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This content is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance specific to your situation.