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When deducting your driving related expenses, there are two options: the standard mileage deduction or the actual expense method. If you take the standard mileage deduction, you can deduct 65.5 cents per mile driven for business purposes in 2023.
25 mar 2024 · However, agents must use the standard mileage deduction in their first year of using the car for business. To put it in perspective, an agent who drives 1,000 miles solely for business purposes could deduct $670 from their taxable income.
11 lip 2019 · You are required to track business miles, commuting miles (those driven to and from a W2 job or regular place of business), and the total miles put on the vehicle during the year. You must also record and categorize all expenses incurred for the vehicle.
3 lip 2019 · In this article, we’ll introduce the options real estate agents have for deducting auto use; the Standard Mileage Rate and Actual Auto Expenses. Then, we’ll flesh out the pros and cons of the standard mileage rate.
You can deduct the cost of gas and wear and tear on your car as a real estate agent. You claim the expense in miles traveled for work, and you can claim both local travel for showings and longer travel for business trips.
Use the Standard Mileage Rate. This method of keeping track of vehicle business expenses is usually the easiest and most effective for a real estate agent. The standard mileage rate generally gives business owners a larger deduction, as long as their car is fairly economical.
How to maximize Mileage Rate Deductions as a Real Estate Agent. Most real-estate agents are self-employed and the mileage deduction is one of the biggest tax deductions you can claim. Thus, you should be keeping detailed records of your mileage to take full advantage of this opportunity.
