Industry Guide

Tax guidance for real estate professionals.

Independent agents and brokers running a small business — 1099 income, marketing spend, and mileage add up quickly.

Who this is for

Built for realtors

For real estate agents, brokers, and team leaders receiving 1099-NEC income from a brokerage or teams. Most agents file as sole proprietors on Schedule C or through an S-corporation.

Common income sources

  • Commission income (1099-NEC)
  • Referral fees
  • Broker splits and overrides
  • Bonuses and incentive pay

Commonly considered expense categories

  • MLS dues, license, and E&O insurance
  • Marketing and lead generation (Zillow, Google Ads, print)
  • Photography, staging, and signage
  • Vehicle expenses (mileage or actual)
  • Cell phone and CRM subscriptions
  • Continuing education

May be deductible if eligible and properly documented. Rules vary — verify with a professional.

Recordkeeping

Recordkeeping checklist

  • Brokerage 1099s and closing statements
  • Marketing invoices and ad platform statements
  • Mileage log (start-of-year and end-of-year odometer)
  • Home office square-footage documentation
  • Receipts for client gifts (subject to per-recipient limits)
Watch outs

Common mistakes to avoid

  • Guessing at mileage instead of keeping a log
  • Deducting client gifts above the per-recipient limit
  • Missing S-corp reasonable compensation requirements
  • Forgetting to track marketing on personal credit cards
FAQ

Frequently asked questions

Industry guides are general educational information for realtors and do not constitute tax advice. Rules change often and personal circumstances vary — please consult a qualified tax professional.
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