What is Deductible on Taxes for Real Estate Agents?

Hi Trey, Shouldn't you be in bed sleeping?  Does this mean you are addicted to AR if you are posting something about taxes and manicures after 10 p.m.?   

As someone that has done taxes for a number of years, I've concluded that a number of people think they are writing off certain types of expenses just because they gave the expenses to their CPA.  That does not  mean that their CPA/tax preparer ACTUALLY deducted them.  When ever I do taxes, I sort throughly the items that the person reports.  Some are deductible.  Some aren't.  I can't fault them for including them, it never hurts to give more information than not enough.  But, in almost every persons returns that I do, there are things I ignore-for their benefit.  Even if it is reported, jst because someone actually deducts something like a manicure on a tax return doesn't mean that the IRS is going to say that is alright if/when they should to an audit. 

If an Realtor has an expense category labeled as "manicures" in the continuation/other section. there might be some red flags.  The IRS gets a LOT of tax returns from Realtors.  It knows what are normal expenses and expense ratios for Realtors.  Any person claiming manicures, as a Realtor, is BEGGING to be audited. 

Should anyone still be reading this long response- unless you are a firefighter/policeman wearing some sort of uniform that no reasonable person would wear as street clothes, the cost of your clothing/upkeep- to include nails, is not a business expense.  Exceptions might be exotic/strip dancers.  If luxury vehicles don't qualify, I doubt luxury nails will hold up. 

Note:  I am no longer a CPA.  I voluntarily gave up my CPA license last August 31, 2007, because I was tired of paying fees to be entitled to do work that I have never done- audits.  You do not have to be a CPA to prepare tax returns, do fraud examinations ,or sell real estate.