Real Estate Industry Employee Tax Deductions

Author: Duncan Warnock CPA | May, 2014

If you work within the real estate industry then there are real estate industry specific as well as general tax deductions that you might be entitled to that you are not aware of. Ensure you get the opportunity to claim all the tax deductions that you are entitled to by getting help from a good accountant with your annual tax return.

6 examples of real estate industry employee tax deductions that you may be entitled to are:

1. Tools & Equipment: A tax deduction is allowed for depreciation of the work related cost of tools and equipment of a real estate employee such as tape measures, tools and cameras.

2. Conferences, seminars & training courses: Work related cost of attending conferences, seminars and training courses to maintain or increase knowledge or skills required by a real estate employee are typically claimable. There must be a relevant nexus between the activity the cost was incurred for and the income earning activities of the real estate employee.

3. Advertising costs:  Work related advertising costs incurred by a real estate salesperson entitled to earn a commission can typically be claimed as a tax deduction if they have not been reimbursed. Examples of advertising costs include, newspaper advertising, sponsorships, letter box drops and signage.

4. Gifts and greeting cards:  A tax deduction is allowable for the work related cost of gifts or greeting cards purchased by salespersons or property managers who are entitled to earn a commission. Work related advertising costs incurred by a real estate salesperson entitled to earn a commission can typically be claimed as a tax deduction if they have not been reimbursed. Examples of advertising costs include, newspaper advertising, sponsorships, letter box drops and signage.

5. Parking fees & Road Tolls: A tax deduction is allowable for parking fees and road toll expenses incurred when travelling in the course of duty.

6. Car Wash expenses & Roadside service fees:  Work related cost of car wash expenses and roadside assistance fees are allowable tax deductions where the ‘log book method’ or ‘1/3 of actual expenses method’ is used to calculate work related car expenses.

In addition to the above examples a real estate industry employee may also be able claim expenses relating to the work related portion of self education, home office running expenses, mobile phone,   internet, photocopying and clothing amongst other things. 

For further assistance with the preparation of an Real Estate Industry employee tax return (or any other tax return), contact us to arrange a meeting with Duncan Warnock CPA from the Warnock Accounting Maribyrnong office.