The 10 Most Overlooked Tax Deductions for Real Estate Agents in 2025

As a real estate agent, you aren't just selling homes; you are running a business. However, when tax season rolls around, many agents leave thousands of dollars on the table simply because they failed to track "minor" expenses.

In 2025, the IRS is paying closer attention to Schedule C expenses, making it more important than ever to have an organized digital paper trail. Here are the 10 most commonly overlooked realtor tax write-offs and how to ensure you never miss a deduction again.

1. Home Office Deduction (The "Simplified" Trap)

Many agents avoid this deduction because they fear an audit. However, if you have a dedicated space in your home used exclusively for business, you can deduct a portion of your rent/mortgage, utilities, and insurance.

Pro Tip: Don't just use the "simplified method" ($5 per sq. ft.). If your actual expenses are higher, tracking them individually can save you much more.

2. Lead Generation & Digital Marketing

We all know about Zillow and Realtor.com fees, but what about your Facebook Ads, Instagram boosted posts, or your website's domain and hosting? Every dollar spent to get your name in front of a client is 100% deductible.

3. Professional Photography & Staging

In a visual market, professional media is a necessity. Fees for photographers, drone pilots, and virtual staging software are legitimate business expenses. Even the physical items you buy for staging (that aren't part of your personal home) count.

4. Client Gifts (The $25 Rule)

Did you buy a "Welcome Home" basket for your buyer? The IRS allows you to deduct up to $25 per person, per year for business gifts. While it seems small, across 20 closings a year, that's $500 in deductions.

5. Professional Memberships & Dues

Your NAR (National Association of Realtors) dues, state-level board fees, and MLS subscription costs are all deductible. These are high-cost necessities that many agents forget to log because they are often auto-billed.

6. Continuing Education & Licensing Fees

Renewing your license or taking a specialized certification course (like a Luxury Home Specialist or Green Designation) isn't just an investment in your career—it's a tax write-off.

7. Software Subscriptions (SaaS)

From your CRM (like Salesforce or Hubspot) to your electronic signature tools (DocuSign) and even your Recifi subscription for expense tracking—if you use it to run your business, it's deductible.

8. Auto Expenses: Mileage vs. Actual

Most agents use the standard mileage rate, but if you drive a large SUV for client tours or have high repair costs, the "Actual Expenses" method might be better.

The Key: You must have a record of every gas station receipt and repair bill to prove your claim.

9. Client Meals

While "entertainment" (like golf or concerts) is no longer deductible, client business meals generally are (typically at 50%). If you are discussing a listing or a contract over coffee or lunch, keep that receipt!

10. Desktop and Mobile Hardware

Did you upgrade your iPhone this year to take better property videos? Did you buy a new laptop for your home office? These "Capital Expenses" can often be fully deducted in the year of purchase under Section 179.

The Secret to Maximizing Deductions? Stop the "Shoebox" Method.

The reason most agents overlook these deductions isn't a lack of knowledge—it's a lack of organization. A faded receipt at the bottom of your car's console is a lost deduction.

This is where Recifi changes the game. Recifi is built specifically for high-mobility professionals like you.

• No App Required: Just visit Recifi.app on your mobile browser.
• Snap & Go: Take a photo of your receipt the moment you get it.
• AI Categorization: Our AI doesn't just read the total; it automatically assigns the receipt to a tax-ready category like "Marketing" or "Client Meals."
• Instant Insights: See your spending patterns in real-time so you aren't surprised at the end of the quarter.

Don't wait until April to get organized. Start your free trial at Recifi.app today and keep more of your commission in your pocket.