Mileage Logs for Real Estate Agents

18 February, 2021

As a Realtor, using your vehicle for Business purposes uses up a huge amount of your miles. Regardless of whether you are driving a potential future homeowner to 5 different locations on a Sunday or going to get snacks for your open-house, these trips will all be tax-deductible for you, as you drove your car for business purposes.

The IRS announces a Standard Mileage Rate every tax year that taxpayers can use to calculate their vehicle expenses for tax deduction purposes. The 2021 Business Mileage Standard Rate is 56 cents/mile, which can quickly add up to a considerable amount in tax deductions, which means More Money in your Wallet.

Annual Business Mileage for a Realtor is around 3,000 – 10,000 miles a year. This means a tax deduction of $4000-12,000 on average.

Let’s take a look at a Specific Example

Mileage Logs for Real Estate Agents

The 2021 Standard Mileage Rate for Business purposes is 56 cents/mile.

Let’s look at Emma for instance. She is a Real Estate Agent who had 5 clients who were looking for properties this month. Emma calculates that she drives around 90 miles per day between properties and work meetings. She hosts open-houses, goes to realtor-sponsor lunches, looks at a potential “pocket listing” house. And so on.

90 miles per day on average, for approx 300 days a year means that Emma drove 27,000 miles in a year for Business purposes. Calculating with $.56 per mile, Emma can claim $15,120 in tax deductions on her taxes.

You can drive more (or less) miles than Emma, you can undoubtedly see how this tax deduction is a successful realtor’s primary concern.

What to do now as a Real Estate Agent?

You need supporting IRS-Proof Mileage Logs to claim a Vehicle Deduction. If your Claim is ever Audited, the IRS will expect you to have precise Mileage logs.

Your Mileage log must include:

  • The total Mileage you drove in the Tax Year for Business, Commuting, and Personal Driving other than Commuting;
  • The First Odometer or the Last Odometer reading of the year;
  • The Dates of your Business trips;
  • The Address of the Business Location you’ve visited;
  • And the Purpose of your Trips (i.e. “House Showing”).

It is important to note that you are obliged to demonstrate to the IRS when submitting the expenses that you have Mileage logs in your possession when taking this deduction.

You have already claimed a Tax Deduction in a previous year and now you are being audited for Mileage?

MileageWise helps customers on a daily basis who are being audited by the IRS  (including many Real Estate Agents and Realtors) pass Audits. Our Mileage Logging Software has been designed to meet the strict requirements of the IRS and has been reviewed by IRS audit experts to ensure they are compliant.

If  Realtors choose to take the Standard Mileage Deduction they could get a significant amount of money that they have earned by driving for Business.

Take Advantage of our 14-Day Free Trial, Try ALL of our Unique Features! You will see for Yourself that by creating IRS-Proof Mileage logs in 7 mins/month while saving yourself from the consequences of Inaccurate Mileage Logs, MileageWise becomes the Best Deal for your Dollar on the Mileage Log Market.

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About the blog

I have been blogging for my readers since 2005, primarily about mileage logs and related subjects: about our software development, customer service, and sales experience. I am happy to share my opinion in a humorous manner on the great things in life - if necessary with a firm stance on the subject -, sharing my own raw thoughts.

"I write original content. I'm not copying others."

Akos Barazsy
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