It’s the time of year everyone is gathering up receipts, digital or mashed into a purse or wallet, and getting their tax returns ready to be filed. Although we don’t do tax preparation, the CPAs in our network do. They gave us a few tips to make sure Real Estate agents remember as we are pulling everything together for filings. These are all suggestions, certainly consult with a tax professional for your broader tax strategy.
Auto. Currently, 58.5 cents per driving mile is tax deductible when using your personal vehicle for business travel. To and from showings, meetings, grabbing groceries to bake cookies at the property, all the things it takes to get you from point A to B to grow your business. Depending on your vehicle, some agents take a one-time deduction from the vehicle purchase price, and that works better for them. Our CPAs tell us today’s maximum deduction is $25,000.
Transaction fees. When you use Tongo to access commissions early and reinvest in your business, those fees are tax deductible. When spending money on growing the business, the tax structure is pretty friendly.
The odds and ends. Though it could go without saying- it won’t here. Staging costs, groceries at showings, a percentage of your mobile phone bill, meals and entertainment to the client, advertising costs for your growing business- they are all tax deductible. It’s important to be accurate and reasonable, but anything we spend to make our business better is a viable deduction.
Thanks for being part of the Tongo family and trusting your business with us. We’re always on and here for you. Reach out when we can help.