Tax Deductions for Real Estate: What Owners Commonly Miss
Last updated: October 17, 2026Written by Shane Atkins, founder of TaxSaver Pro
Real estate professionals live in their cars, pay for listings and marketing out of pocket, and juggle board dues and continuing education. With costs spread across every transaction, write-offs are easy to miss. This guide covers the deductions real estate owners most often overlook.
Commonly missed deductions
01Vehicle and mileage
- What qualifies
- Miles driven to showings, listings, and client meetings.
- What doesn't qualify
- Commuting between your home and a regular workplace, personal errands and trips, the personal-use share of a mixed-use vehicle, traffic tickets and fines, and claiming both the standard mileage rate and actual expenses for the same vehicle in the same year.
- Records to keep
- A mileage log kept as you go, showing date, destination, business purpose, and miles for each trip; odometer readings at the start and end of the year; parking and toll receipts; and receipts for gas, repairs, and insurance if you use the actual expense method.
02Home office
- What qualifies
- The space used for paperwork and client coordination.
- What doesn't qualify
- Space also used for personal or family purposes, occasional or incidental work at home, and costs for parts of the home not used for business. W-2 employees working from home generally can't take this deduction on their federal return.
- Records to keep
- Measurements of the office and of the whole home, a photo or floor plan of the space, and, if you use the regular method, rent or mortgage interest statements, utility bills, homeowner's or renter's insurance, and repair receipts.
03Licensing and dues
- What qualifies
- Renewals, board fees, and required continuing education.
- What doesn't qualify
- Pre-licensing courses and exam fees to get your first real estate license, dues to social or recreational clubs, the lobbying share of board or association dues, and fines or penalties. Continuing education needed to keep an existing license qualifies.
- Records to keep
- License renewal notices, board and MLS invoices, statements showing any lobbying portion of dues, continuing education receipts and completion certificates, and proof of payment.
- IRS source
- IRS Publication 535 — Business Expenses
04Marketing
- What qualifies
- Listings, signage, photography, and advertising.
- What doesn't qualify
- Political campaign contributions or ads, lobbying, and promotion of personal (non-business) accounts or activities.
- Records to keep
- Invoices, ad platform statements, and copies or screenshots of the ads or campaigns.
- IRS source
- IRS Publication 535 — Business Expenses
05Phone and software
- What qualifies
- CRM, calls, and client communication tools.
- What doesn't qualify
- The personal-use share of your phone and internet, the basic charge for the first landline into your home, and personal subscriptions such as streaming or personal apps.
- Records to keep
- Monthly phone and internet bills, a written basis for your business-use percentage (such as a review of a typical month), and invoices or account statements for each software subscription.
- IRS source
- IRS Publication 535 — Business Expenses
Records checklist
A summary of every record mentioned on this page. Keep these with your tax return.
- Vehicle and mileageA mileage log kept as you go, showing date, destination, business purpose, and miles for each trip; odometer readings at the start and end of the year; parking and toll receipts; and receipts for gas, repairs, and insurance if you use the actual expense method.
- Home officeMeasurements of the office and of the whole home, a photo or floor plan of the space, and, if you use the regular method, rent or mortgage interest statements, utility bills, homeowner's or renter's insurance, and repair receipts.
- Licensing and duesLicense renewal notices, board and MLS invoices, statements showing any lobbying portion of dues, continuing education receipts and completion certificates, and proof of payment.
- MarketingInvoices, ad platform statements, and copies or screenshots of the ads or campaigns.
- Phone and softwareMonthly phone and internet bills, a written basis for your business-use percentage (such as a review of a typical month), and invoices or account statements for each software subscription.
Related guides
Go deeper on the rules behind these deductions
Educational guidance only, not tax advice. Talk to a tax professional about your situation.