Is E&O Insurance for Realtors Tax Deductable?

Question

Errors and Ommissions Insurance is required by the broker. Is this a valid business expense?

Answer 1

It sure is. I know, tax time is hard because of all the do's and don'ts, will's and won'ts. Anything that is used for your business needs is tax deductible, but if you are reimbursed by the employer you'll have to limit your deductions to the unreimbursed part of it.

If you have records, you can even deduct a part of your cell phone charges... but you'll need to be able to prove the business percentage of use. You can also deduct business mileage, if you kept accurate records. Just remember that you need to count the distance from home to the first stop of the day (and that from the last stop to home) as commuting miles.

If you had special business cards or other promotional items printed, those are deductible too. If you had keys made, or paid someone to mow yards or clean houses, etc., just keep the receipts and count it. It's legit.

Answer 2

Absolutely deductible.

Why would you think it was not?