Pricing note (September 2026): The featured individual-agent offer is $0/month with a two-year commitment, a $750 annual fee, and reduced caps of $7,000 (simpliPRENEUR) or $14,000 (simpliSHARE). Flexible month-to-month pricing is $99/month with standard $7,500/$15,000 caps. simpliMILITARY has a $5,000 cap and $0/month platform fee; the $750 annual fee applies. A 0.1% broker fee applies per transaction ($199 minimum, $399 maximum).
Tax note: This article is general education, not tax or legal advice. Deductibility depends on current law, the facts, business purpose, limitations, and your records. Confirm each item with a qualified tax professional.
Real estate agents working as independent contractors generally report business income and expenses on Schedule C. The useful question is not whether an expense appears on a generic list. It is whether the expense is ordinary and necessary for your business, whether any personal portion has been excluded, and whether your records support the amount.
This checklist helps organize that conversation with a tax professional. It does not promise that every item will be deductible for every agent.
Start With Records, Not Categories
Keep a dedicated business account or otherwise maintain records that clearly separate business and personal activity. For each expense, retain the receipt or invoice, payment record, date, vendor, amount, and business purpose. Mixed-use expenses need a reasonable, documented allocation.
Review records throughout the year. Reconstructing mileage, meals, and mixed-use costs months later is less reliable than recording them when they occur.
Brokerage and Transaction Costs
Potential business-expense categories may include:
- Commission split amounts retained by the brokerage
- Platform, technology, desk, and transaction fees
- Errors and omissions insurance or pass-through assessments
- MLS, lockbox, and association charges
- Transaction-coordination services purchased for the business
Treatment can depend on how an item is characterized and documented. Some membership dues may include nondeductible portions, so retain the annual notice and let a tax professional identify any limitation.
At simpliHŌM, the written plan terms—not just the headline split—should be part of the file. The flexible plans charge $99 per month, while the featured two-year option has a $750 annual fee. A 0.1% broker fee applies to each transaction, with a $199 minimum and $399 maximum.
Licensing and Education
License renewal, required continuing education, and training that maintains or improves skills in an existing business may qualify. Education that prepares someone for a new trade or profession can be treated differently.
Keep the course description, proof of payment, completion record, and a note explaining how it relates to the current real estate business.
Marketing and Client Development
Potential categories include listing photography, signs, print materials, advertising, website hosting, email software, and other promotion. Document the business purpose and retain the campaign or listing connected to the expense where practical.
Client gifts and meals have special rules and limits. Entertainment is not automatically deductible merely because a client attends. Record the recipient or attendees, date, amount, and business purpose, then ask a tax professional to apply the current rules.
Technology and Office Costs
CRM subscriptions, transaction software, cloud storage, e-signature tools, office supplies, and equipment may qualify when used for business. If a phone, computer, internet connection, or other asset has both business and personal use, only the supported business portion may be eligible.
Larger equipment may be expensed, depreciated, or treated under another method depending on current rules and the business's circumstances. Do not assume that the full purchase price belongs in one year without review.
Bundled brokerage tools simplify the invoice trail, but they do not create an extra deduction for the imputed retail value of each tool. Record the amount actually paid under the plan and avoid double-counting included services.
Home Office
The IRS provides simplified and regular methods for qualifying business use of a home. The space generally must meet applicable exclusive- and regular-use requirements, subject to specific exceptions and limitations.
Keep measurements, photographs, housing-cost records, and an explanation of how the space is used. Review IRS Publication 587 and ask a professional which method fits the facts.
Vehicle and Travel
Business vehicle use may be calculated under the standard-mileage or actual-expense method, subject to current eligibility and recordkeeping rules. Maintain a contemporaneous log showing the date, destination, mileage, and business purpose. Ordinary commuting is generally treated differently from travel between business locations.
Business travel may involve transportation, lodging, and meals, but mixed personal travel must be allocated and meals may be limited. Keep the itinerary, receipts, conference or meeting materials, and business purpose.
Health Insurance
The self-employed health-insurance deduction has eligibility and income limitations. It may cover qualifying medical, dental, and certain long-term-care premiums for an eligible taxpayer, spouse, and dependents, but employer-plan eligibility and net self-employment income can affect the result.
Use the current Form 7206 and instructions rather than assuming every premium is fully deductible. A brokerage-facilitated option is still coverage the agent should evaluate by premium, network, deductible, and tax eligibility; access is not employer-paid insurance.
Retirement Contributions
Self-employed agents may consider arrangements such as a SEP-IRA, one-participant 401(k), or SIMPLE IRA, depending on eligibility and business structure. Contribution limits, deadlines, employee coverage rules, and deduction treatment can differ.
Use current IRS guidance and coordinate the choice with tax and financial professionals before funding an account.
Professional Services and Insurance
Accounting, business legal work, consulting, coaching, general liability, cyber coverage, and other professional costs may qualify when they are ordinary, necessary, and directly related to the current business. Personal services and the personal portion of mixed-use services do not become deductible because they were paid from a business account.
Keep the agreement, invoice, proof of payment, and a description of the business need.
Estimated Taxes and Self-Employment Tax
Independent contractors may need to make estimated tax payments during the year. The IRS provides thresholds, due dates, and payment methods in its estimated-tax guidance.
Self-employment tax and its related income adjustment are calculated under federal tax rules; they are not ordinary Schedule C expenses. Tax software or a professional can apply the calculation based on net earnings and the current forms.
A Practical Year-Round Checklist
- Reconcile business accounts monthly
- Save receipts and invoices in a searchable system
- Log mileage when the trip occurs
- Record the business purpose for meals, travel, gifts, and mixed-use purchases
- Keep brokerage agreements and commission statements
- Review estimated payments before each due date
- Meet with a tax professional before year-end while planning options are still available
Frequently Asked Questions
Are brokerage fees deductible?
They may be ordinary and necessary expenses of an agent's business, but the treatment depends on the fee and the taxpayer's facts. Keep the agreement, invoices, and commission statements for professional review.
Can I deduct CRM and transaction software?
Business-use software may qualify. Deduct only the amount actually paid, allocate mixed use when required, and do not separately deduct tools already included in one brokerage fee.
Is my cell phone deductible?
The supported business-use portion may qualify. Keep a reasonable calculation and records rather than automatically treating the entire bill as business.
Can I deduct coaching?
Education that maintains or improves skills in an existing business may qualify, while education that prepares someone for a new trade may not. Retain the curriculum and ask a tax professional to review the specific program.
Do I have to itemize personal deductions to report business expenses?
Schedule C business expenses are separate from the personal standard-versus-itemized deduction choice, but the correct reporting depends on the taxpayer's filing situation.
Sources and date
Tax guidance was checked on September 24, 2026 against the IRS Self-Employed Individuals Tax Center, IRS estimated-tax guidance, Form 7206, and Publication 587. IRS rules, thresholds, and forms change; use the materials for the applicable filing year.