Close Deals All Day. Your Bookkeeping Shouldn't Take All Night.

✓ Start Here tab with step-by-step instructions

✓ Business Info tab — your details, ready for filing

✓ Expense categories pre-loaded for your industry

✓ 500-row transaction tracker with dropdown categories

✓ Schedule C summary — auto-calculates your totals

✓ Monthly summary for quarterly estimated taxes

Self-employed real estate agents may deduct ordinary and necessary business expenses under IRC Section 162. Commonly claimed deductions include brokerage desk fees, MLS fees, and lockbox costs (Line 10/Line 27), marketing and advertising (Line 8), vehicle mileage to showings and inspections (Line 9), E&O insurance (Line 15), and real estate license renewal (Line 23). Real estate agent bookkeeping requires tracking these categories carefully. Your tax situation may vary, so consult a qualified tax professional.

Schedule C (Form 1040) is the IRS form where sole proprietors report business income and expenses. It calculates your net profit or loss, which flows to your Form 1040. Most real estate agents are independent contractors who file Schedule C to report commission income and deduct business expenses. Our free schedule C template for real estate agents is an organizational tool that categorizes expenses by the correct line numbers.

Self-employed real estate agents generally pay both income tax and self-employment tax (15.3% for Social Security and Medicare) on net profit. Your income tax rate depends on your total taxable income and filing status. The self-employment tax applies to net earnings over $400. Commission income can vary dramatically year to year. Consult a qualified tax professional.

If you expect to owe $1,000 or more in federal tax for the year, the IRS generally requires quarterly estimated tax payments. Deadlines are typically April 15, June 15, September 15, and January 15. Real estate commissions are often large and irregular, making quarterly estimation especially important. Our template helps you track expenses year-round.

Mileage to showings, inspections, open houses, and client meetings may be deductible using either the standard mileage rate or actual vehicle expenses. Many real estate agents accumulate significant mileage. You must choose one method per vehicle per year. Track all business trips carefully. Consult a qualified tax professional about which method may work best.

An Enrolled Agent (EA) is a tax professional who has passed a rigorous IRS exam and is authorized to represent taxpayers directly before the IRS. Unlike other preparers, EAs must pass a rigorous exam and complete continuing education annually. For real estate agents with commission income, high mileage, and marketing expenses, an EA can help ensure compliance. Arc & Ledger's team of Enrolled Agents specializes in Schedule C businesses.