What bookkeeping records do I need to keep as a real estate agent?
Real estate agents have specific expenses that most businesses don’t deal with. Your record-keeping needs to capture all of them or you’ll miss deductions and struggle at tax time.
Start with income documentation. Save every commission statement from your brokerage and match them against the 1099 you receive at year end. Brokerages sometimes make errors, and you need the detailed statements to catch discrepancies. If you receive referral fees or bonuses, document those separately.
Vehicle mileage is probably your biggest deduction opportunity. Agents drive constantly for showings, open houses, client meetings, and property inspections. The IRS requires a contemporaneous log showing the date, destination, business purpose, and miles driven for each trip. Apps like MileIQ or Everlance track this automatically. Reconstructing mileage from memory at year end doesn’t work and won’t survive an audit.
Keep receipts for all marketing expenses. This includes yard signs, business cards, flyers, professional photography, virtual tours, staging costs, and online advertising. If you pay for Zillow or Realtor.com advertising, save those invoices. Social media ad spend counts too.
Professional dues add up quickly. Document your NAR membership, state and local association fees, MLS access fees, and lockbox fees. These are all deductible but easy to forget if you’re not tracking them systematically.
Licensing and education records matter. Keep receipts for your real estate license renewal, continuing education courses, and any certifications or designations you pursue. The same goes for errors and omissions insurance premiums.
Client meals and gifts have specific documentation requirements. For meals, note who you met with and the business purpose. Client gifts are deductible up to $25 per person per year, so track who received what. Holiday gifts to past clients count if you’re staying in touch for future referrals.
If you work from a home office, document your home expenses. Keep mortgage statements or rent receipts, utility bills, and insurance costs. You can only deduct the portion of your home used exclusively for business, so know your office square footage relative to your total home size.
Technology expenses include your phone, computer, tablet, and any software subscriptions like CRM systems or transaction management platforms. If you use your personal phone for business, document the business use percentage.
Save bank and credit card statements for at least seven years. These serve as backup documentation if you lose individual receipts. Separate your business and personal expenses on different cards whenever possible. Mixing them creates sorting headaches when it’s time to file.
Real estate professionals who work with a bookkeeper typically catch more deductions because someone is reviewing expenses monthly rather than scrambling at tax time. The records you keep only help you if someone is actually categorizing and tracking them throughout the year.
If your records are scattered across shoeboxes and email folders, consider working with Los Angeles QuickBooks bookkeepers who understand real estate agent finances. Getting organized now saves money on your tax bill and makes your business easier to manage.
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