Tax season is nobody’s favourite time — especially if you're a real estate agent. You’ve probably been busy with showings, offers, and keeping deals on track. But when April rolls around, all those receipts, fees, and expenses come back into the picture. It can get messy fast.
The truth is, taxes don’t have to be that stressful. If you build a simple system early on and use tools that actually fit your day-to-day work, tax time can feel way more manageable — and even save you money.
Keep Work and Personal Spending Separate
One of the best things you can do for your real estate business real estate business is to open a separate bank account and credit card just for work. That way, anything you spend on your business — whether it’s signs, gas, or listing ads — it all stays in one place.
No more guessing if that $42 charge from February was for dinner with a client or groceries. It also makes it easier when your accountant or tax software goes through your records. Clean accounts = fewer mistakes.
Track Expenses As You Go
It’s a lot harder to sort through 12 months of receipts in one sitting than it is to track things a little at a time. The most organized agents log expenses when they happen — not weeks or months later.
You can use notebooks and folders, but most agents are turning to real estate accounting software that keeps everything in one place and it's digital so you eliminate having to store receipts, invoices and expenses. It does the tracking for you and saves hours of time later. Tools like AgentXpense Accounting Software are made just for agents, so they know how to handle commission income, marketing expenses, and all the little costs that come with the job.
Save Receipts the Easy Way
Receipts are still necessary — especially if you’re ever audited and asked to show proof of an expense. But nobody has time for a box full of paper or an overstuffed glove compartment.
Take a photo of every receipt as soon as you get it. Many realtor accounting tools let you upload those photos straight into your records, and you can match them with each expense. The best part is it only takes seconds, the image is saved for years and prevents a headache later.
Don’t Forget to Log Your Mileage
Driving is a big part of the job. Showings, listing appointments, closings — you’re always on the move. All those kilometres add up and can be deducted from your taxes, but only if you track them.
Trying to remember every trip is nearly impossible. That’s why many agents use real estate tax software that logs trips automatically using GPS. You just check your app and approve the business drives, and the rest is done for you.
Know What You Can Deduct
Real estate agents can write off a lot more than they think. Common deductions include:
- Gas and mileage
- Business meals
- Signage and flyers
- MLS and board fees
- Marketing and advertising
- Client gifts
- Office supplies
- Phone and internet use
- Home office expenses
- Education and licensing
- Software tools and apps
- Staging and photography
These are everyday costs in real estate, and they can really add up. With the right agent expense accounting software, all of these can be tracked and categorised as they happen—no more guesswork.
Stay on Top of Commissions and Fees
It’s not just about what you spend. What you earn also needs to be tracked — especially if you’re on a commission split with your brokerage or team.
Commission and expense tracking for agents is something many generic accounting tools don’t handle well. But genuine real estate-specific software helps you log every closing, track how much you earned, what went to your brokerage, and what’s left for you.
This also makes it easier to plan ahead — because you’ll know what’s coming in and what you need to set aside for taxes.
Make Things Easy for Your Accountant
Even if you plan to hand everything over to your accountant at the end of the year, the cleaner your records are, the easier (and cheaper) their job will be. Instead of going back and forth asking for receipts or explanations, your books are already sorted.
If you use online accounting software that’s made for agents, you can just export your reports, send them over, and done.
Build a Simple Routine — and Stick to It
Tax season becomes a nightmare when everything is left to the last minute. But if you set up a routine — even something as simple as checking your expenses once a week — you’ll avoid the stress.
Track your spending as it happens. Save every receipt. Log your mileage. Use software that makes this simple. And talk to a real estate-savvy accountant if you can. You don’t need to overthink it. You just need to stay consistent.
Final Thoughts
You work hard all year. Don’t let poor recordkeeping cost you money when tax season hits. A few small changes now — like using the best real estate accounting software for your business — can save you time, stress, and cash later.
