Real estate agents are responsible for documenting business expenses throughout the year. ✓ Access the best mileage tracking app for realtors with MileIQ!
Real estate agents are responsible for documenting business expenses throughout the year. Find out how MileIQ can help track mileage for real estate and maximize your return.
Real estate agents must finalize any last minute deals before the new tax season begins. The good news is there remains an ongoing demand for buying new homes in the new year. According to the National Association of Realtors, housing prices will continue to appreciate in 2022, generating a multitude of income opportunities for real estate professionals. In today’s economic climate, realtors have the potential to earn higher commissions that will ultimately affect the way they file taxes. In contrast to W-2 employees, realtors have the opportunity to deduct a number of annual expenses as well. For instance, they can use mileage tracking for real estate to lower their tax bill each year.
We’ve gathered some expert tips to help real estate agents utilize the IRS standard mileage rate for business to their best advantage during tax season.
Your business miles are money.
Using a mileage app for realtors provides an easy way to track your business miles and put in an accurate claim from the IRS come tax filing season. You can ensure your account has a detailed log, so you never miss a mile.
The best mileage tracking app for realtors enables you to keep 100% accurate records with minimal effort. If you’re tired of missing out, you need a reliable realtor mileage tracker.
With an array of features, the MileIQ real estate agent mileage log allows you to:
First and foremost, the tools offered by a realtor mileage log help you to slash your costs. With the cost of gas perpetually rising, reducing your transport costs can save a massive portion of your fuel costs every month.
Forget wasting time hunting for receipts and chasing down your busy team on their expenses. Spend more time giving clients a great service by easily tracking your mileage using automated tools on the MileIQ realtor mileage app.
Throw out the traditional expenses claim forms and ensure your employees avoid wasting precious hours with the help of the best mileage tracking app for realtors.
Cutting your fuel usage and reducing your mileage has the knock-on effect of lowering your business’s carbon footprint. Your mileage tracker for realtors will allow you to meet the standards of your company’s social responsibility policy.
Encourage more efficient use of your company’s vehicles and track your progress with your realtor expense tracker.
Apart from transportation drivers, real estate agents spend a majority of their time on the road. In fact, the largest expense category for realtors is vehicle costs. The NAR reports a realtor spends on average $1,200 per year on their vehicle. Although that might sound steep, realtors shouldn’t fret over those added expenses. The average deduction for MileIQ users is $7,022, well above that national average. So, how does it work? Thanks to MileIQ, realtors can keep track of business miles by using advanced automated drive detection. Simply download the app, open the application on your device, and let it run in the background as you drive from Point A to Point B. While you stay busy taking calls and navigating your next location, MileIQ helps you accurately log your daily drives. Realtors can even automatically classify frequent routes and keep track of both personal and business miles from the convenience of their iOS device.
Since real estate agents are deemed independent contractors, the IRS allows them to deduct mileage each year. Therefore, every mile driven to property showings, client meetings, and inspections, can be written-off during tax season. In order to write off mileage, real estate agents must keep an accurate log of business miles. They can use the standard mileage rate or actual vehicle expense method to configure their deduction as well. At the end of each year, the IRS announces its standard mileage rates for business, charity, medical, or moving purposes so drivers can calculate their tax refund without error. For 2022, the IRS standard mileage rate for business is 58.5 cents per mile, which is up 2.5 cents from 2021.
Realtors are constantly on the go. From client meetings to deal negotiations, the time spent on the road is greater than most professions. And although agents have the flexibility that 9 to 5-ers dream of, there are a good deal of expenses to keep track of. As a result, it’s important to keep detailed records of all real estate expenses throughout the year. This includes everything from transaction information to mileage logging to even repair costs. Luckily, MileIQ covers all your mileage needs. The best part — it’s tax deductible! You can test out a free trial of the best mileage tracking app for realtors and enjoy 40 drives of mileage logging at your leisure. With the new year quickly approaching, you don’t want to wait to log your 2021 odometer reading and get started right away.
As independent contractors, there are other tax write-offs for realtors to consider. Aside from mileage deduction, real estate agents can maximize their tax return by deducting additional auto-related expenses, including gas, maintenance, and repairs. Likewise, realtors can write-off licensing fees. This consists of NAR membership dues, yearly MLS costs, and even continuing education courses. For realtors that want to advance in their profession, such as brokerage licenses or designations and certifications, tax deductions can help earn back a portion of those costs.
Claim back your business mileage with the best mileage tracking app for realtors. Contact MileIQ to learn more about the value found within the industry’s most intelligent, innovative mileage tracker.
Whether you use a company fuel card, have a large fleet, or simply need the best mileage app for realtors to make your life simpler, MileIQ has you covered.