As a real estate agent, your car is your lifeline. You’re constantly on the go, showing properties, meeting clients, and attending open houses. All those miles add up, but did you know they can also add to significant tax savings? At FSL Tax & Accounting Services, we want to help you maximize your car deduction and keep more money in your pocket.
Mileage Deduction: Your Tax-Saving Workhorse
The mileage deduction allows you to deduct a set amount per mile driven for business purposes. This deduction eliminates the need to track every gas receipt, oil change, and repair bill. The IRS standard mileage rate for the 2023 tax year is a generous 65.5 cents per mile.
Here’s the potential benefit: Imagine driving 10,000 miles for business in a year. That translates to a whopping $6,550 deduction!
Qualifying for the Deduction:
To claim the mileage deduction, you must use your car for business more than 50% of the time. Real estate agents who frequently travel for work typically meet this requirement quickly.
Why Use a CPA for Your Car Deduction?
While the mileage deduction seems straightforward, there are some nuances to consider:
- Tracking Mileage: Accurate mileage records are crucial. A CPA can recommend mileage tracking tools and ensure you maintain proper documentation.
- Mixed-Use Scenarios: What if you use your car for personal errands and business trips? A CPA can help you separate business and personal mileage for accurate deductions.
- Alternative Deduction Method: The mileage deduction is only sometimes the best option. If you have a car with significant operating expenses, a CPA can analyze if itemizing actual car expenses might be more beneficial.
Beyond the Mileage Deduction
A CPA can also help you navigate other potential car-related tax deductions, such as:
- Business Use of a Leased Vehicle
- Parking Fees and Tolls
- Interest Paid on a Car Loan (for business use)
Let’s Maximize Your Tax Savings!
Don’t leave tax savings on the table! At FSL Tax & Accounting Services, we understand the unique challenges real estate agents face. We can help you navigate the intricacies of car deductions and ensure you’re claiming every dollar you deserve.
Contact our firm today to schedule a consultation and learn how our experienced CPAs can help you maximize your car deduction and other tax benefits specific to real estate agents. Call 678-702-7218 or complete the online form. We’ll handle the tax complexities, allowing you to focus on selling houses.
