If you’re a Realtor, the end of the year is an important time to look at your tax strategy. (9 End-of-Year Tax Tips for Realtors)

Real estate income can be unpredictable. You may have a few big commission checks one month and much less income the next. That makes it especially important to know where you stand before December 31.

The goal of year-end tax planning is simple: understand your expected tax bill, identify legitimate tax-saving opportunities, and avoid paying more than necessary.

Here are several end-of-year tax tips for Realtors to review before the year ends.

1. Review Your Income for the Year

Start by looking at your year-to-date income.

How much have you earned in commissions? Are you expecting additional closings before the end of the year? Have your commissions increased significantly compared with last year?

Your tax strategy should be based on your current numbers—not last year’s income.

If your income is substantially higher than expected, you may need to revisit your estimated tax payments and look for planning opportunities before December 31.

The IRS generally requires self-employed taxpayers to make estimated tax payments throughout the year, and your estimated payments should reflect your expected income and tax liability.

2. Make Sure You’re Capturing Your Realtor Tax Deductions

Realtors have a variety of legitimate business expenses that may be deductible when properly documented.

Review your records for expenses such as:

• MLS and association dues
• Brokerage fees
• Marketing and advertising
• Business cards and signs
• Professional education
• Business software and subscriptions
• Office supplies
• Professional services
• Business-related travel
• Business mileage
• Cell phone and internet expenses
• Home office expenses, when applicable

Don’t wait until tax season to start looking for missing expenses.

Go through your bank and credit card statements now and compare them with your bookkeeping records. If something was purchased for your real estate business, make sure it has been properly categorized and documented.

3. Review Your Vehicle and Mileage Records

Driving is a major part of many Realtors’ businesses.

Showings, listing appointments, inspections, meetings, open houses, and other business activities can create significant business mileage.

If you use your personal vehicle for business, make sure your mileage records are complete and that you understand which trips qualify as business mileage.

Good documentation matters. A tax deduction without adequate records can become a problem later.

Before year-end, review your mileage log and make sure it reflects your actual business activity.

4. Revisit Your Estimated Tax Payments

One of the biggest financial surprises for self-employed Realtors can be a large tax bill.

Because commissions generally don’t have taxes withheld like a traditional paycheck, you may need to make estimated tax payments during the year.

The IRS currently lists estimated payment due dates of April 15, June 15, September 15, and January 15 of the following year for calendar-year taxpayers.

If your income changed significantly during the year, don’t simply assume your estimated payments are still correct.

Run the numbers.

You may discover that you’ve paid too much, too little, or approximately the right amount.

5. Look at Retirement Contributions

Retirement planning can also be part of a Realtor’s year-end tax strategy.

Depending on your business structure, income, and retirement plan, you may have opportunities to contribute to a retirement account while potentially receiving a tax benefit.

For 2026, the IRS lists a $7,500 IRA contribution limit, with an additional $1,100 catch-up contribution for individuals age 50 and older. Other retirement plans have significantly different contribution limits.

If you’re a high-income Realtor, don’t assume an IRA is your only option. SEP IRAs, SIMPLE plans, and 401(k)-based strategies may have different rules and contribution opportunities.

The right choice depends on your circumstances and should be reviewed before you make a contribution.

6. Consider Whether an S Corporation Strategy Makes Sense

If you’re earning substantial income as a Realtor, your business structure deserves a review.

Some Realtors operate as sole proprietors or single-member LLCs, while others may benefit from an S corporation structure.

An S corporation can affect how business income is treated for tax purposes, but it also comes with additional payroll, accounting, and compliance requirements.

This is not a strategy to implement simply because someone told you that “all Realtors should have an S corp.”

Instead, look at your actual income, expenses, reasonable compensation requirements, administrative costs, and overall tax picture.

If you’ve had a significant increase in commissions, year-end is a good time to discuss whether your current structure still makes sense.

7. Review Business Purchases Before December 31

If you already know your business needs equipment, technology, office furniture, or other business assets, talk with your tax professional before making a year-end purchase.

Some business purchases may qualify for depreciation deductions or other tax treatment, depending on the asset, how it is used, and the tax rules that apply.

But buying something simply to create a deduction doesn’t necessarily save you money.

A $10,000 purchase isn’t a $10,000 tax savings.

Make the purchase because your business needs it, then determine how the tax treatment fits into your overall plan.

8. Don’t Forget About Your Home Office

If you regularly use part of your home for your real estate business, you may want to review whether you qualify for the home office deduction.

There are specific IRS requirements regarding the use of the space, including rules involving regular and exclusive business use.

Your home office strategy should also fit with how you operate your business and maintain your records.

If you haven’t reviewed this deduction before, year-end is a good time to ask your tax professional whether you qualify.

9. Look at Your Tax Strategy Before You File

One of the biggest mistakes Realtors can make is waiting until tax season to think about taxes.

By the time your tax return is being prepared, many of the planning opportunities for the prior year have already passed.

Year-end tax planning gives you time to make informed decisions while there are still actions you may be able to take.

That could include reviewing your business structure, retirement strategy, deductions, estimated payments, business expenses, or other opportunities specific to your situation.

A Strong Finish Starts With a Year-End Tax Review

If you’ve had a strong year in real estate, congratulations—but don’t let a strong commission year turn into an unexpected tax bill.

Before December 31, take a close look at:

• Your year-to-date income
• Estimated tax payments
• Business deductions
• Mileage and vehicle expenses
• Retirement contributions
• Business purchases
• Your business structure
• Home office expenses
• Potential tax-planning opportunities

The goal isn’t to manufacture deductions or spend money just to reduce your tax bill.

It’s to make sure you’re taking advantage of legitimate opportunities and making decisions based on your actual financial picture.

And the sooner you review your numbers, the more options you may have.

If you’re a Realtor and want to know where you stand before the year ends, schedule a Tax Strategy Call to review your current tax picture and identify potential opportunities for the year ahead. (9 End-of-Year Tax Tips for Realtors)