2025 Tax Guide

Every Tax Deduction for Real Estate Agents

The complete guide to IRS Schedule C deductions. Know exactly what you can write off—and what documentation you need to prove it.

Quick Summary: What Can You Deduct?

Advertising & marketing (100%)
Vehicle mileage for business (100%)
MLS dues & subscriptions (100%)
Staging & supplies (100%)
Client meals (50%)
Continuing education (100%)

Advertising & Marketing

Line 8

All marketing expenses to promote your real estate business and listings.

Deduction rate:100% deductible

What You Can Deduct

Zillow Premier Agent subscription
Realtor.com advertising
Facebook and Instagram ads
Google Ads campaigns
Professional listing photography
Matterport 3D tours
Drone photography/videography
Print flyers and brochures
Direct mail campaigns
Business cards
Yard signs and riders
Open house advertising

Pro tip: Keep copies of ads and invoices. Screenshot digital ad campaigns before they expire.

Car & Truck Expenses

Line 9

Business use of your vehicle for showings, client meetings, and property visits.

Deduction rate:100% deductible

Commuting from home to your regular office is NOT deductible. However, trips from home directly to client meetings or showings ARE deductible.

What You Can Deduct

Mileage to/from property showings
Driving to client meetings
Open house travel
Property inspection trips
Trips to title company/closings
Bank and supply store runs
Continuing education travel
Networking event travel

Pro tip: Keep a mileage log with date, destination, purpose, and miles. Use the standard mileage rate for the applicable tax year or actual expenses—not both.

Office Expenses & Dues

Line 18

MLS access, professional subscriptions, and office supplies.

Deduction rate:100% deductible

What You Can Deduct

MLS dues and fees
NAR/state/local association dues
CRM software (Follow Up Boss, etc.)
E-signature tools (DocuSign, Dotloop)
Transaction management software
Lockbox fees and keys
Office supplies
Printer ink and paper
Computer software
Cloud storage (Dropbox, Google)

Pro tip: Many of these are monthly subscriptions—keep bank/credit card statements organized by vendor.

Staging & Supplies

Line 22

Staging costs, open house supplies, and client gifts.

Deduction rate:100% deductible

Client gifts over $25/person are limited. Staging costs you pay for sellers' homes are deductible; staging your own investment property is different.

What You Can Deduct

Professional staging services
Staging furniture rental
Staging accessories purchased
Open house refreshments
Open house signs and materials
Closing gifts for clients
Gift cards for referrals
Cleaning supplies for showings
Home warranty gifts

Pro tip: For staging, note the property address on the receipt. Client gifts are deductible up to $25 per person per year.

Business Meals

Line 24b

Client lunches, closing dinners, and business meals with referral partners.

Deduction rate:50% deductible

IRS rules require documentation of who attended, their business relationship, and the business purpose discussed. Without this documentation, the deduction may be disallowed.

What You Can Deduct

Client lunch/dinner meetings
Closing celebration dinners
Referral partner meals
Networking lunch meetings
Team meeting meals
Coffee meetings with prospects

Pro tip: Record who attended, their business relationship, and what business was discussed. Deductibility depends on proper documentation and business purpose.

Education & Training

Line 27a

Continuing education, certifications, and professional development.

Deduction rate:100% deductible

What You Can Deduct

License renewal courses
CE (Continuing Education) credits
Designation courses (CRS, ABR, etc.)
Real estate conferences
Industry seminars and workshops
Coaching programs
Online training courses
Real estate books and publications

Pro tip: Keep certificates of completion and receipts. Travel to conferences is also deductible (separately, under travel).

Documentation Requirements

The IRS requires contemporaneous records to substantiate business deductions.

Here's what you need for each category:

For Every Expense

  • Receipt or invoice showing vendor name, date, and amount
  • Business purpose — why this expense was necessary for your business
  • Category — which Schedule C line item it belongs to

For Vehicle/Mileage

  • Date of the trip
  • Destination — where you went
  • Business purpose — showing, client meeting, etc.
  • Miles driven — odometer or GPS tracking

For Meals (Extra Requirements)

  • Names of attendees — who was at the meal
  • Business relationship — client, prospect, referral partner
  • Business discussed — what was the purpose of the meeting

Capture Receipts the Way the IRS Expects

SnapExpenses captures receipts in 3 seconds, auto-categorizes to the right Schedule C line, and exports audit-ready documentation for your CPA.

This guide is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified CPA or tax professional for advice specific to your situation. This guide is maintained by SnapExpenses, an expense tracking tool built for real estate agents filing IRS Schedule C.