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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
Yes. Expenses incurred in the course of your real estate sales or property management activities are deductible.
This TurboTax article is a good overview of Tax Tip for Real Estate Agents and Brokers.
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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
@DavidS127 's answer is correct if the realtor is paid as an independent contractor and files Schedule C (which for realtors is usually the case). But if the realtor is a W-2 employee, those expenses are not deductible.
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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
@DavidS127
I know this discussion is old, but I was curious, do you know if repairs made to a long-standing client’s property are still tax deductible, even if the home will not be sold for 1-3 years (assuming the repairs will out last that period of time). Also assuming cash method of accounting.
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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
Yes, if there is an expectation that the property will be sold, you can deduct the repairs as DavidD66 mentions in his post.
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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
What expense category would the expense go under?
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If a realtor incurs expenses to repair a clients home, are those expenses deductible on that realtors taxes?
If you are filing a Schedule C for your realtor business, include these expenses under repairs and maintenance.
Please see this TurboTax Tip for more information about the real estate profession.
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