It’s August, so the last thing on your mind is probably taxes. But, there are things you can be doing now and throughout the year that will help you get the most out of available deductions. If your business involves real estate in Arizona, then read on for information on deductions you may not know about, and for helpful tips that can help you take full advantage of current real estate IRS tax laws.
Common Tax deductions for Arizona real estate professionals
- Vehicle expenses, including mileage, insurance, interest on loans, parking expenses, tolls, license plate fees and depreciation.
- Home office expenses (if you qualify – check with your CPA).
- Advertising and marketing expenses – basically, anything you pay for advertising materials.
- Bookkeeping, accounting, tax preparation and legal expenses.
- Business meals and entertainment (deduction is limited to 50%)
- Postage
- Real estate franchise fees
- Office supplies
- Office rent, utilities and cleaning
- Business-related travel expenses
- MLS dues and dues paid to realtor associations and chamber of commerce memberships
- Real estate license renewal fees
- Continuing education expenses
- Computers and related software and equipment
- E&O, health, liability and equipment insurance
- Wages paid to employees
- Cell phone expenses
- Business gifts (deduction is limited)
Tips to help make tax time “less taxing”
1. Get organized. Use a separate bank account and credit/check card for your business-related expenses, and organize your receipts. Remember to save receipts even for the smallest purchases, as they can add up to big deductions. Keep track of mileage as you go, rather than trying to recreate it later.
2. Understand limitations. Most business expenses can be deducted if they are “ordinary and necessary.” A CPA can help you determine whether an expense satisfies both of these requirements.
3. Get help from professionals. We get it; you’re entrepreneurial. That’s great! However, unless your business is a tax business, it will be incredibly difficult, if not impossible, to stay on top of the tax rules and regulations on your own.
We would love to help out. Please complete the form to set up an appointment with our real estate tax specialist at Sean Core CPA PLLC conveniently located on Chandler/Mesa border today.