Which method should Real Estate Agents use to Deduct Auto Expenses?

Real Estate Sales Representative with Royal LePage / Moneyledgers Software

There are 2 methods you can use as a Real Estate Agent to deduct your auto expenses.  Which method is right for you?   


This chart may help:

real estate agent auto expense comparison chart



  • For a Car you OWN:  use the standard mileage rate for the first year your vehicle was in service.  After that, you can calculate both methods and use whichever gives you a larger deduction. Remember: if you use the actual expense method the first year, you must use it for the life of the vehicle.

  • For a Car You LEASE: If you use the standard mileage rate for a car you lease, you must use it for the entire lease period. You cannot switch methods on a lease.

For the current standard IRS auto deductions rate click here

"Pay It Forward" and feel free to pass this blog post along to any agents it may help.

Happy Deducting!

Our Products and Services:

** FREE tax deduction checklist for Real Estate Agents: click here
** bookkeeping software for real estate agents: www.agentledgers.com
** virtual bookkeeping services for real estate agents: www.myvirtualbookkeeping.com 


Note: This is general information to help you gain an understanding of U.S. tax laws. I am not a tax attorney or tax preparer. Please consult a qualified expert when you are preparing your tax returns or making tax-related decisions.


Comments (2)

Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good afternoon Steve Penner 

Thank you for sharing your information with us at Active Rain.

Have a great day 12/06/2017.

Dec 06, 2017 12:20 PM
Steve Penner
Royal LePage / Moneyledgers Software - Winnipeg, MB
REALTOR / Owner of Moneyledgers

You are welcome...!

Dec 06, 2017 12:23 PM

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