Tax Deductible Items
Probably the No. 1 deduction real estate pros miss is the home-office deduction. Many erroneously believe they don't or can't qualify for this deduction. Untrue. Almost any real estate agent or broker who works as an independent contractor can qualify for the home-office deduction.
This is the case even if you work out of an outside sales office and/or spend most of your time on the road and at the properties you're trying to sell.
In addition, many real estate pros are afraid to take this deduction because they have heard that it is a red flag for an IRS audit. The IRS says this isn't the case.
The home-office deduction may have been an IRS audit flag over a decade ago, when the rules for claiming it were more restrictive than they are now. But there is no reason to believe that claiming it today significantly increases your chances for an audit.
It's important to understand that you don't have to spend all of your work time in your home office or even perform your most important business activities there to qualify for the home-office deduction.
You can qualify for this deduction if you have a home office that you use exclusively and regularly for administrative or management activities for your real estate business, and you have no other fixed location where you regularly perform such activities.
Administrative and management activities can include, but are not limited to:
Tax Deductible Items
Tax Deductible Items
Tax Deductible Items
Tax Deductible Items
Tax Deductible Items
Tax Deductible Items
Tax Deductible Items
Tax Deductible Items
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