Tax Deductions for Real Estate Agents

Tax season can be daunting for many individuals, especially those working in the real estate industry. Times are shifting, and various experts can assist you with your tax returns. Our tax experts have worked with various clients, including real estate employees. All you need to do, like with any other business is determine precisely what expenses and eligible deductions you need when filing your tax return. The benefit of hiring a professional tax expert is that they will work with you to get the most from tax deductions for real estate employees.

This article will delve into the world of tax deductions tailored explicitly to real estate employees in Australia. By gaining a thorough understanding of tax deductions for real estate employees, you can claim for expenses that have been incurred in the year.

    Advertisement Costs

    In the real estate business, advertising is an integral part. As a result, you can deduct your advertising costs through signs, newspapers, and letterbox drops, among other media. However, you can only deduct this expense if your income is based on commissions rather than a fixed salary.

      Motor Vehicle Expenses

      Real estate employees move around for their work. You can claim the cost if you have to drive to an open house, show clients a new home, visit clients or even sites. It is impossible to deduct the cost of getting to and from work.

      Regarding tax deductions for real estate employees, knowing the expenses you can claim, especially motor vehicle usage, is important. If your total kilometers travelled exceed 5000km, you may deduct costs: motor vehicle depreciation, renting, fuel, registration and insurance, repairs and maintenance, cleaning, etc. An established rate is utilised when claiming fewer than 5000 kilometres; the only document necessary is an authorised logbook from the employer.

        Work Clothing

        You can deduct the price of buying, maintaining, and repairing a specialised uniform that is required to wear at work and displays your employer’s logo. It must be clothing that identifies you as an employee; this requirement does not apply to informal clothes like blue shirts and pants.

          A modern living room with floor-to-ceiling windows representing the concept of tax deductions for real estate agents.

          Self-Education Costs

          You can deduct your self-education expenditures as a real estate professional, including the costs of training sessions and conferences. These must, however, be connected to your line of work. By taking advantage of this tax deduction for real estate employees, you can further invest in your career growth while reducing your taxable income.

            Customer Incentives

            The goal of salespeople and property managers is to maintain satisfied clients. If you earn through commissions, you can claim the costs of purchasing gifts for your clients. The monetary rewards must be connected to your job.

            Other supplementary tax deductions for real estate employees include telephone, internet, interstate travel, seminars, taxi travel, property books, periodicals, journals, eyewear if working outside, stationary, and laptops.

              Essential Records to Maintain for Tax Deduction Claims

              As you may be aware, the ATO is very keen on supporting documents when making tax deductions for real estate employees claims. Ensure you have records if you are in the real estate industry and have plans to claim for expenses linked to your work. These records must include the supplier’s name, the type of products purchased, the price, and the date. It’s critical to use reservations when putting together your tax return. Because the ATO will check most of the information submitted, you should make every effort to be accurate.

                This article is for general information only. It does not make recommendations nor does it provide advice to address your personal circumstances. To make an informed decision, always contact a registered tax professional.

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