• Vertigan Partners

Real Estate Agent Deductions Explained


Are you a real estate agent confused about what you can and can’t claim at tax time? Every industry is different and with so many options available on what can and can’t be claimed – we understand why you may be confused.

Let’s have a run through of what you can and can’t claim and help you maximise your tax refund.

When claiming back deductions you need to ensure that the deductions you are trying to claim are directly related to your capacity to earn your income, that you spent the money yourself and that you have kept adequate records of the purchased items.

You can claim the cost of purchasing, laundering and mending of any work specific uniforms i.e items that have company logo or details on them. Unfortunately you can not claim the designer high heels that compliment your uniform. Any items that you purchase to wear for work that you chose specifically for work also can not be claimed – even if you only wear them for work.

In relation to travel and travel expenses you can not claim the cost of travel to and from your standard work location from your home.

If you need to leave the office to attend an open home or visit a client, you can claim the cost of the travel to the second location. The same applies if you need to visit a separate location for a compulsory meeting or appointment.

Log books need to be kept for travel and fuel receipts also kept.

If you need to stay overnight due to work commitments you are able to claim the travel, accommodation and meal costs providing you are able to provide receipts.

If you have a home office set up you are also able to claim percentages of the costs.

Large cost items such as computers, printers and furniture for the business can be claimed on a depreciation schedule.

You can also claim a percentage of the electricity, telephone and internet costs based on how often they are needed for the work related activities.

Many real estate agents purchase their clients gifts throughout their working time together as a Thank You. Providing you are employed on a basis that includes a commission you are able to claim back these costs. If you are not receiving a commission, you are unable to claim.

Other work related expenses that can be claimed are marketing costs and materials, decorating properties ready for selling and education costs.

Throughout the financial year, make sure you keep track of all your receipts and log books – keeping it all in the same place ready for your accountant come tax time.

Tax deductions do not need to be difficult and we hope the guide above assists you for your next tax return.


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