Real-Estate Professional Business Income & Expenses
 
These basic categories are listed to help you think of what you have for business expenses, not every business will have all these expenses nor are you limited to these expenses, you may have additional categories. You are responsible for keeping track of all your income and expenses. All expenses need to be ordinary expenses for your business and necessary for the business to operate.

Income / Awards / Bonuses                                                                                     
 
Expenses
 

Advertising:                           Newspaper Advertising, Flyers, Business Cards, Etcetera

Subcontractors                     
 
Insurance:                              Business Liability Insurance (See last page for Homeowner’s Insurance)

Business loan / Credit card Interest:      Interest directly related to operating your business

Legal & Professional:                Accounting, Bookkeeping, Legal cost, Tax Preparation

Office                                        Administration costs, Bank fees, Postage, Management books, Etcetera 

Office Rent                            
                                
Rent:                                        Office or business property

Supplies                                    Items that you buy and use up belong here

Licenses:                                   Any license required for the business (not driving license)

Meals and Entertainment:        Meals to conduct business and other forms of entertainment for clients

Gifts                                          Gifts are limited by tax code to $25.00 per person

                               Business Miles                        Commuting Miles                    Personal Miles
Auto Miles    |                                               |                                               |                                  
                        Business mileage must be kept in the form of a log. If using Actual Expenses please use Attached worksheet.

Telephone                                Business phone line or cell phone (do not include the base cost of first home phone line)

 
Training 

Trade Dues              
 
Parking & Tolls       
 
Closing Expenses       

MLS Fees    
 
Commissions & Fees 
 
Open House Expenses    

Real-Estate Affiliate Fees    
 
Capital Expenses and Preparation Notes:

List capital expenses as follows:      Description, Date Purchased, Cost

Business use of your home deductions

If you use a portion of your home for business purposes, you may be able to take a home office deduction.
To qualify for a home-office deduction, you must use an area of your home regularly and exclusively for business purposes and you must meet the following conditions:

You use the…

Space as your principal place of business for any trade or business, and the business generates revenue.

Place to meet or deal with your patients, clients or customers in the normal course of your trade or business.

Area exclusively to store inventory or product samples for your business.

Space exclusively for your business and not part of the time for personal use with.
 
Expenses:

Mortgage Interest:                                                                                                      

Real-Estate Taxes:    

Homeowner’s / Renter’s Insurance:     

Rent:      
 
Repairs & Maintenance:          Painting, Lawn Care, Cleaning, Snow Removal, Septic Pumping, Ect.

Utilities:                                    Electric, Heat, Water, Sewer, Ect.

Depreciation

Cost or Fair Market value of your home, whichever is lower:    

Value of Land:    

Capital Improvements to home:       

 
See IRS Publication 587, Business Use of Your Home for additional information.