1. Home office deduction:
To qualify for a home office deduction, you must use a part of your home exclusively and regularly for business purposes. The amount of the deduction will depend on the percentage of your home that is used for business, the cost of your home, and your income.
2. Mileage deduction for business travel:
You can deduct mileage expenses incurred while traveling for business purposes. The standard mileage rate is 54 cents per mile as of 2019.
3. Supplies and materials used for business purposes:
Expenses related to the purchase or use of supplies and materials that are used in your business can be deducted. This includes items such as stationery, postage stamps, brochures, and advertising costs.
4. Meals and entertainment related to business:
If you incur any expenses for meals or entertainment related to your business, you can deduct those costs. However, you must meet certain criteria in order to qualify for the deduction. The meal or entertainment must have been directly related to the promotion or expansion of your business, and you must have been able to prove that it was not a personal expense.
5. Advertising and marketing expenses:
All advertising and marketing expenses related to your real estate business can be deducted. This includes costs such as website design, printing costs, and listing fees.
6. Car expenses:
If you use your car for business purposes, you can deduct certain expenses related to it such as fuel costs, maintenance, repairs, and depreciation. You can either use the standard mileage rate or calculate your actual expenses.
7. Personal property taxes:
Property taxes on assets that are used in your business can be deducted. This includes items such as office furniture, computers, and vehicles used for business purposes.
8. Home repairs and maintenance costs:
If you incur any costs related to repairing or maintaining your home office, these can be deducted from your taxable income.
9. Tax preparation fees:
Any fees you pay for preparing and filing your tax return can be deducted from your taxable income.
10. Insurance premiums:
Premiums paid for insurance policies that cover property or assets used in your business can be deducted. This includes general liability, professional liability, and health insurance.