I am full time employee on W2, got my real estate license(parttime), can I calim the expenses??

Kapil
Kapil Member Posts: 3 Newcomer
edited December 2024 in Credits/Deductions

Expenses related to exam, association fess and several subscriptions about $2,000, recently got the license, no income yet. Can I claim the expenses, if so how?

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  • KeriC
    KeriC FreeTaxUSA Agent Posts: 109
    Answer ✓

    @Kapil Yes, it sounds like all of your real estate income and expenses will be reported on Schedule C. This will include your expenses related to your real estate exam, association/brokerage fees, other subscription expenses, etc.

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 350

    Many Real Estate Agents are either a Statutory Employee or Self-employed. If you file a Schedule C, you may report those expenses on the Schedule C.

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  • Kapil
    Kapil Member Posts: 3 Newcomer
    https://community.freetaxusa.com/discussion/comment/2985#Comment_2985

    Thank you Matt! As part of filing through FreeTaxUSA, I can have Schedule C?

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  • AndyS
    AndyS FreeTaxUSA Agent Posts: 14

    Hey Kapil,

    If you are considered a Statutory Employee, you can use a Schedule C filing with our software!

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  • Kapil
    Kapil Member Posts: 3 Newcomer
    https://community.freetaxusa.com/discussion/comment/3617#Comment_3617

    Thank you Andy! My regular job is full time salaried(W2), I just got my real estate license(associated with brokerage), this is a part time weekend job(commision based and no tax deductions), I was wondering if I can claim the expenses related to real estate exam, association/brokerage fees and other subscription expenses, hope I am clear this time.

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  • JohnW
    JohnW FreeTaxUSA Agent Posts: 19

    You would report the part time work as a separate business on Schedule C, and you would have deductions such as the licensing and exams that you listed above.

    Assuming that you drive to visit properties in your own vehicle you would also be able to claim vehicle expenses. Although each case is different I generally would recommend using the standard mileage method. That's because if you use the actual expense method, you're locked into it for all future years. In either case it's essential to keep meticulous mileage records.

    I would recommending reviewing IRS publication 334 for Small business

    as well as https://www.irs.gov/forms-pubs/about-publication-463 which covers vehicle expenses.

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