Sorry to burst your holiday bubble, but if you have not already done so, you might want to consider getting a jump on putting your tax receipts together.
I for one, hate waiting til the last minute -April 15 (or any date close to it) to start putting my info together. I prefer to have everything said and done no later than February end. This way, God Forbid, if any unexpected surprises, law changes, errors or omissions, blah-blah-blah should arise, I will have enough time to possibly correct, adjust and resubmit before deadline.
As a Real Estate Professional, Independent Consultant - have you been keeping up with all of your allowable expenses for this past year ? If not, this is the perfect time to make your resolution to keep better records of your expenditures starting January 1, 2008. Can you believe it...that's just 5 days away, next Tuesday!
Here are just a few typical business expenses related to Real Estate Professionals:
Auto Travel - Deductible business mileage is travel to and from:
- Client meetings
- Escrow
- Lenders
- Showings
- Caravans
- Continuing Education Classes
- Business Trips
Business Mileage rates for 2007 are 48.5 cents per mile. This rate has been increased for 2008 to 50.5 cents per mile.
Try to remember to keep receipts for all car operating expenses:
Parking meters, tolls, gas, oil, repairs, insurance, car loan interest, vehicle registration.
Professional Fees & Dues - Paid to organizations related to your Real Estate profession are deductible.
Document and keep track of fees paid to:
- Associations
- Chamber of Commerce
- Board of Realtors
- City/State Business License
Business Supplies: Following are examples of ordinary and necessary business supplies that are generally tax deductible.
Briefcase
Stationary
Computer software and supplies
Fax supplies
Film and processing
Lock boxes, keys and locksmith
Map books
Photocopy expense
Postage, shipping and freight
Greeting Cards
Please consult with your Tax Advisor for a complete list of allowable deductions. If you are like me, don't have a Tax Advisor, (Hubby and I do our own taxes - We are IRS Authorized E-File Providers), go directly to the source..."The IRS" for more info.
With all of the expenses involved in running your own business, especially in the world of Real Estate, don't miss out on all of the legal deductions allowed by our government.
Here is another link to an article posted a few years back, "10 Easy Tax Deductions, Tax Records you can't do without". Has great info to get you started on your goal to keeping track of your allowances for the year ahead.
Of course, the internet is a gold mine of information for you to sort through, but if you don't have the time or patience here is just one more handy dandy link which will be sure to guide you to finding your tax deductions.
Keeping better records is a learned and practiced behavior. It will be difficult at first, but if you are like me, every year will be a little better than the last if you stick with it. Just consider it one of your New Year's resolutions and commit to it. It will make your life so much easier come this time next year!
Good Luck and I Wish Everyone A Healthy and Prosperous New Year!
"May Peace Be Within Your Walls and Prosperity Surround Your Properties"
Psalm 122:7
Tina Little-Coltrane, Realtor/Broker
CDI Realty, Alamance County NC
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