Year-End Expense Review for Real Estate Agents

As a real estate agent or office manager at a small business, it's essential to review your year-end expenses to ensure you're maximizing your tax savings. To simplify expense tracking and stay organized, consider investing in real estate expense management for under $10/user (2026), which can help you stay on top of your finances and avoid common pitfalls.

Year-End Expense Review Checklist

• Client Gifts: Review client gifts and ensure they do not exceed $25 per recipient per year. Consider documenting the gift-giving process, including the recipient's name, date, and amount spent.
• Meals with Clients: Verify that meals with clients have a clear business purpose. Keep records of the date, location, and amount spent on meals.
• Business Use of Your Vehicle:
• Travel Expenses: Review travel expenses, including transportation, lodging, and meals. Ensure that expenses are business-related and that records are kept, including receipts and itineraries.
• Office Expenses: Review office expenses, including supplies, equipment, and rent.
• Deadline: Ensure that all expense records are up-to-date and accurate by the end of the year. Consider hiring a tax professional to review your expenses and ensure compliance with tax laws.
• Review and Reconcile: Review and reconcile all business expense accounts, including credit cards and bank statements, to ensure accuracy and completeness.

• Business Use of Your Vehicle: For the second six months, the rate increases to 76 cents per mile.
• This method allows you to deduct a portion of your home's actual expenses, such as mortgage interest, rent, utilities, etc., based on the percentage of your home used for business.
• Business Meals:
• Membership Fees:
• Insurance Premiums:

• Determine the square footage of your home office space.
• Keep accurate records of your home office space, including measurements and photos, in case of an audit.
• • Utilities (electricity, water, gas, internet)
  • Home maintenance and repairs
  • Home insurance
  • Home security systems
• Keep receipts and records of all home office expenses, as they may be subject to depreciation.

Pass-Through Business Income and Self-Employment Taxes

• Review your business income for the year and categorize it as pass-through income, which includes income from partnerships, S corporations, and sole proprietorships.
• Complete Form 1040 and Schedule C to report your business income and expenses, and calculate your net earnings from self-employment.

Bonus Depreciation and Equipment Purchases

• The phase-out begins at $4.09 million.
• Determine if you qualify for bonus depreciation, as the availability and percentage have changed significantly due to recent legislation.
• Check the current bonus depreciation percentage, as it varies and can be found in the One Big Beautiful Bill Act.
• For equipment purchases made in 2026, consider the following options:
1. Claim bonus depreciation, if available, to accelerate depreciation.
• Consult with a tax professional to ensure compliance with current tax rules and regulations.

Tax rules, limits and rates change. Confirm current figures with the IRS or your accountant before you file.