071 | Taxes for Realtors

For those of you that are lucky to be in the Real Estate Industry during a hot market, I'm sure you count your blessings for the buzz in your profession 🤩

Late evening showings, weekend open houses and paperwork, paperwork, paperwork - definitely make for a busy day and a large amount of people, places and transactions to organize.

For real estate agents that are sole proprietors, many of the expenses you incur in your real estate sales are tax deductible. Careful record keeping will ensure you capture all #CRA tax deductions and allowances you're entitled to. For busy realtors, we highly suggest that you track all your expenses in a cloud accounting program, like #Quickbooks. We would deter you from using spreadsheets, as we have seen them fail in the past which leads to even more late evenings and time lost re-doing work.

Certain documents need to be kept for several years. For example, property that depreciates, such as the car you use to show homes, office equipment, and your office furniture, is usually deducted over time. Keep the receipts for depreciating items for as long as you own them and then for a few more years.

Some of the common tax deductions for realtors are:

• licensing and tuition

• 50% of client meals and entertainment

• home office expenses

• vehicle expenses

• marketing and advertising costs

• professional service fees

We hope you have found this helpful for the upcoming tax season.

And as always, we are here to assist! Reach out to us for expert number crunching.

#bigrose #bookkeeping #realestate #realtors #taxes