Tax Organizer for Real Estate Professionals

KEY EXPENSES FOR REAL ESTATE PROFESSIONALS

 

A   AUTO TRAVEL:

Your auto expense is based on the number of qualified business miles you drive. Expense s for travel between business locations or daily transportation expenses in going between your residence and temporary work locations are deductible; include them as business miles. Your trips between home and work each day or between home and one or more regular places of work are COMMUTING and are NOT deductible.

Document business miles in a record book as follows: (1) Give the date and business purpose of each trip; (2) Note the place to which you traveled; (3) Record the number of business miles; (40 Record your car’s odometer reading at both the beginning and end of the tax year. Keep receipts for all car operating expenses – gas, oil, repairs, insurance, etc., and of any reimbursement you received for your expenses.

B   TRAVEL – OUT-OF-TOWN:

Expenses of traveling away from “home” overnight on job related and continuing-education trips are deductible. Your “home” is generally considered to be the entire city or general area where your principal place of employment is located. Out-of-town expenses include transportation, meals, lodging, trips and miscellaneous items like laundry, valet, etc.

Document away-from-home expenses by noting the date, destination and business purpose of your trip. Record business mile if you drove to the out-of-town location. In addition, keep a detailed record of your expenses – lodging, public transportation, meals, etc. Always list meals and lodging separately in your records. Receipts must be retained for lodging expense. However, if any other business expense is less than $25, a receipt is not necessary if you record all of the information in a diary. You must keep rack of the full amount of meal and entertainment expenses even though only a portion of the amount may be deductible.

C   PROFESSIONAL FEES & DUES:

Dues paid to professional societies related to your profession are deductible. However, the cost of initial admission fees paid for membership in certain organizations or social clubs are considered capital expenses.

D   TELEPHONE EXPENSES:

The basic local telephone service costs of the first telephone line provided in your residence are not deductible. However, toll calls from that line are deductible if the calls are business related. The cost (basic fee and toll calls) of a second line in your home are also deductible, if used exclusively for business.

E   CONTINUING EDUCATION:

Educational expenses are deductible under either of two d=conditions: (1) Your employer requires the education in order for you to keep your job or rate of pay; or (2) The education maintains or improve skills in your profession. Costs of courses that are taken to meet the minimum requirements of a job, or that qualify a person for a new trade or business, are NOT deductible.

F   SUPPLIES & EXPENSES:

Generally, to be deductible, items must be ordinary and necessary to your real estate profession and not reimbursable by your employer.

G   EQUIPMENT PURCHASES:

Record separately from other supplies, the costs of business assets which are expected to last longer than one year and cost more than $100. Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses like business cards, office supplies, etc.

 

TAX DEDUCTIONS FOR REAL ESTATE PROFESSIONALS

AUTO TRAVEL Client Meetings   Escrow & Loan Office Trips   Continuing Education   Out of Town Business Trips   Showing Property   Parking Fees ($)   Tolls ($)   Other:     TRAVEL – AWAY FROM HOME Airfare   Bridge & Highway Tolls   Bus & Subway   Car Rental   Laundry   Lodging (do not combine with meals)   Meals (do not combine with lodging)   Parking   Porter, Bell Caption   Taxi   Telephone Calls (including home)   Train   Other:     PROFESSIONAL FEES & DUES Association Dues   Chamber of Commerce   Realty Board   License   Other:     TELEPHONE EXPENSES Cellular Toll Calls   Fax Transmissions   Paging Service   Pay Phone   Toll Calls   Other:     CONTINUING EDUCATION Correspondence Course Fees   Materials, Supplies & Textbooks   Seminar Fees   Other:

SUPPLIES & EXPENSES
Advertising, Signs, Flags & Banners
Appraisal Fees
Attorney Fees
Bank Charges
Briefcase
Computer Software & Supplies
Film & Processing
Business Meals (enter 100% of Expense)
Business Cards
Clerical Service
Courier Service
Entertainment (enter 100% of Expense)
Photocopy Expense
Equipment Repair
FAX Supplies
Finders Fees
Gifts & Flowers
Greeting Cards
Insurance – Errors & Omission & Liability
Legal & Professional Services
Lock Boxes, Keys & Locksmith
Map Book
Multiple Listing Service
Office Expenses
Open House Expenses
Postage
Referral Fees
Rent
Repairs to Sell Listed Property
Shipping
Stationary
Other:

 

EQUIPMENT PURCHASES
Answering Machine
Calculator
Camera
Computer Equipment
Copy Machine
FAX Machine
Pager
Telephone
Recorder
Other: