Mileage Logs for Real Estate Agents

Last updated on: August 25, 2022

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.

How much is the standard mileage rate?

The IRS announces a standard mileage rate every tax year that taxpayers can use to calculate their vehicle expenses for tax deduction purposes.

The 2022 Q1 & Q2 standard business mileage rate is 58.5 cents/mile, with the rate for 2022 Q3 & 4 being 62.5 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.

Mileage Logs for Real Estate Agents

Let’s take a look at a specific example:

The 2022 standard mileage rate for business purposes is 58.5 cents/mile in the first half and 62.5 cents/mile in the second half of 2022.

Let’s look at Emma for instance. She is a real estate agent who has had 5 clients looking for properties this month. Emma drives approx. 90 miles a day between properties and meetings. She hosts open houses, goes to realtor-sponsor lunches, and looks at potential “pocket listing” houses.

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 an average of 60.5 cents per mile for the whole year, Emma will be able to claim $16,000 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 do I do now?”

You need supporting IRS-approved mileage logs to claim a vehicle mileage tax deduction. When your claim is 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 addresses of the business locations 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’ve already claimed a tax deduction in a previous year and now you’re 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 can get a significant amount of money that they earned by driving for business.

Did you forget to record your trips in the past as a Google user?

Then you’re very lucky because if you have Location History turned on in your Google account, even if you have 1000+ trips/month, you can convert them into an IRS-approved mileage log with the help of MileageWise.

Take advantage of your 14-day free trial, and try all of our unique features.

You will see for yourself that by creating IRS-proof mileage logs in 7 minutes/month and 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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