Real Estate Agents: Maximizing Auto Expense Deductions

Real estate agents can significantly reduce their tax liability by claiming auto expense deductions. The two primary methods for claiming these deductions are actual expenses or mileage, with mileage being the more common approach. However, it’s crucial to be cautious of the misconception that purchasing a large truck automatically qualifies for a 100% write-off in the year of purchase. This is false, and seeking professional guidance is essential to ensure compliance with tax regulations and maximize legitimate deductions.

Transcript:

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one minute moment.

One of my larger groups of people I do taxes for are probably real estate agents and one of the biggest deductions real estate agents have are auto expense. Now that can be via actual or mileage. In most cases I will say mostly mileage but sometimes people will come in and they’re like I brought this truck and everyone knows or most of the people that probably have ever seen me or driving down the freeway I drive a fairly large truck but you have to be careful guys I will tell you there’s a big rumor going on out there anyone can buy a big truck and write off their taxes a hundred percent in the year that you have it. That is false and you need help call me.

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