Expenses incurred to build and maintain referral relationships with real estate agents, builders, and financial planners are fully deductible. This includes meals with referral partners (50% deductible), co-branded marketing materials, client appreciation events, and educational seminars you host for Realtors.
RESPA prohibits certain kickbacks, but legitimate marketing expenses — meals, events, co-branded materials — are fully deductible and RESPA-compliant when structured correctly.
All costs of advertising and promoting your business are fully deductible. This includes Google Ads, Facebook and Instagram ads, business cards, flyers, brochures, signage, website design and hosting, domain names, email marketing tools (Mailchimp, Klaviyo), and any other promotional expenses.
A real estate agent spending $8,000/year on Facebook ads, business cards, and listing photography deducts the full amount, saving $2,400–$3,200 in taxes.
Website costs (design, hosting, domain) are marketing expenses — deduct them fully. If a website is a major build, it may need to be amortized over 3 years instead of expensed immediately.
Real estate agents and brokers can deduct all professional membership fees and dues required to practice. This includes MLS access fees, National Association of Realtors (NAR) dues, state and local association dues, errors and omissions (E&O) insurance, and any other professional membership costs directly related to your real estate business.
A real estate agent paying $3,200/year in MLS fees, NAR dues, and E&O insurance deducts the full amount, saving $960–$1,280 in taxes.
Stack MLS and association fees with the mileage deduction, marketing deduction, and home office deduction for a comprehensive real estate agent tax strategy.
Deduct interest paid on mortgages for your primary residence and one second home, up to $750,000 of acquisition debt.
Paying $24,000 in mortgage interest annually saves $8,400 at a 35% tax rate when itemizing.
Compare itemized vs. standard deduction annually. For rental properties, mortgage interest is fully deductible on Schedule E with no dollar limit.
A UNK client had been taking the standard deduction for three years while paying $28,000/year in mortgage interest on a $750,000 Seattle home. After a full deduction review, Uncle Kam found that stacking the mortgage interest deduction with state income taxes ($10,000 SALT cap), charitable contributions ($4,500), and property taxes pushed the itemized total to $42,500 — well above the $29,200 standard deduction for married filers. The client had been overpaying by $9,200/year.
Are you sure you're taking every deduction available to you? A 30-minute strategy call could reveal thousands in missed write-offs.
Be the Next Win — Book a CallYes, if you itemize deductions. You can deduct interest on up to $750,000 of mortgage debt ($375,000 if married filing separately) on your primary residence and one second home. The deduction only makes sense if your total itemized deductions exceed the standard deduction ($30,000 for married filers in 2026).
Yes. Mortgage interest on a second home (vacation home or investment property used personally) is deductible on the same $750,000 combined limit. If the property is rented out, different rules apply and the deduction is taken on Schedule E.
Add up your mortgage interest, state and local taxes (up to $10,000), charitable contributions, and other itemizable expenses. If the total exceeds $15,750 (single) or $30,000 (married filing jointly) in 2026, itemizing saves you more money.
Only if the loan proceeds were used to buy, build, or substantially improve the home securing the loan. Home equity loans used for other purposes (paying off credit cards, vacations) are not deductible under current law.
Yes. Points paid on a mortgage to purchase your primary residence are generally deductible in the year paid. Points paid on a refinance must be deducted over the life of the loan.
Deduct 50% of the cost of business meals where there is a genuine business discussion. The meal must not be lavish, and the business purpose must be documented.
Spending $20,000/year on business meals = $10,000 deduction, saving $3,700 at a 37% rate.
Entertainment expenses (concerts, sporting events) are 0% deductible since 2018. Meals at entertainment events may still qualify if separately stated on the bill.
A UNK client ran a B2B sales consulting firm and spent $18,000/year entertaining clients at restaurants. He had stopped deducting meals after the 2017 tax law changes confused him. Uncle Kam clarified: business meals with clients where business is discussed are still 50% deductible. With proper documentation (date, attendees, business purpose on every receipt), the client deducted $9,000 — saving $3,330 at his 37% rate.
If you're taking clients to dinner and not deducting it, you're leaving money on the table. Book a call to set up a proper documentation system.
Be the Next Win — Book a CallYes. Business meals where you discuss business with a client, prospect, employee, or business partner are 50% deductible. The meal must have a clear business purpose, and you must document the date, location, attendees, and business topic discussed. Entertainment expenses (sporting events, concerts) are no longer deductible.
In most cases, business meals are limited to 50%. Meals at company-wide events like holiday parties remain 100% deductible. Employer-provided meals on-premises (cafeteria, overtime meals) are 50% deductible in 2026 under current law.
The IRS requires: the amount of the expense, the date, the location, the business purpose, and the names and business relationships of all attendees. Keep the receipt and write the business purpose on the back (or in your expense app) immediately after the meal.
Yes. Meals while traveling away from home for business are 50% deductible. You do not need a client present — solo meals during business travel qualify. You can use the IRS per diem rates instead of tracking actual meal costs if you prefer a simplified approach.
No. The Tax Cuts and Jobs Act of 2017 eliminated deductions for entertainment expenses — tickets to sporting events, concerts, golf rounds, and similar activities are no longer deductible, even if business is discussed. Only the meal portion of a business dinner at a restaurant remains 50% deductible.
Fees paid to a broker-dealer, branch, or mortgage company for the right to operate under their license are fully deductible as ordinary business expenses. This includes monthly desk fees, split fees, and technology platform fees charged by the sponsoring broker.
A loan officer paying $800/month in desk fees deducts $9,600/year.
All fees paid to maintain your NMLS license — initial application, annual renewal, state licensing fees, and background check fees — are fully deductible. Mortgage professionals licensed in multiple states can deduct all state-level renewal fees.
A mortgage broker licensed in 5 states may deduct $2,500–$4,000/year in NMLS and state fees.
Errors and omissions insurance required for independent mortgage brokers and loan officers is fully deductible as a business expense. This includes the annual premium for your E&O policy and any surety bond premiums required by your state.
Annual E&O premiums of $2,500–$5,000 are 100% deductible.
All software used to run your mortgage business is fully deductible — CRM platforms (Salesforce, Follow Up Boss, BNTouch), loan origination software (Encompass, Calyx, Byte), pricing engines, rate alert tools, document management systems, and e-signature platforms.
A loan officer using Encompass, a CRM, and e-signature tools may deduct $4,000–$8,000/year.
When a loan officer absorbs rate lock extension fees on behalf of a borrower to save a deal, those fees are deductible as a business expense. Similarly, fees paid to access wholesale lender pricing engines and rate lock platforms are deductible.
A busy loan officer absorbing 4–6 lock extensions per year at $500–$1,500 each deducts $2,000–$9,000/year.
Subscriptions to property data tools, appraisal review software, flood zone determination services, and automated valuation model (AVM) platforms used in your mortgage business are fully deductible. This includes CoreLogic, DataMaster, Mercury Network, and similar tools.
Annual subscriptions to property data and appraisal tools typically run $1,500–$4,000/year — all deductible.
Most taxpayers leave the QBI deduction unclaimed — it reduces taxable income by up to 23% starting 2026 under the OBBBA.
HSA contributions offer a triple tax advantage — deductible, tax-free growth, tax-free withdrawals.
Charitable donations of appreciated stock avoid capital gains AND generate a full fair-market-value deduction.
This write-off is commonly used by the following taxpayer profiles. Click to see all strategies for your situation.
