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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.
@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.
@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.
Yes, if there is an expectation that the property will be sold, you can deduct the repairs as DavidD66 mentions in his post.
What expense category would the expense go under?
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.
This states that a purchase for repair to a client home is deductible and that it goes under repairs and maintenance?! There is no repairs and maintenance section for business expense write off. Please advise where to include this
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