Working in real estate is fast-paced, client-driven, and often involves wearing many hats. From open homes to negotiations to keeping your license current, your workday is rarely nine-to-five. But with so many moving parts, it’s easy to overlook the business expenses you’re entitled to claim.
Getting this right matters. Every legitimate deduction reduces your taxable income, which means more money stays in your pocket to invest back into your business. In this guide, we’ll break down the key expenses real estate professionals can (and can’t) claim, and how to stay compliant with IRD.
Everyday vs Long-Term Expenses
Not all expenses are treated equally for tax. The IRD draws a clear line between everyday costs (revenue expenses) and assets (capital expenses).
Everyday running costs like petrol or your mobile plan can be claimed in the same year. Bigger purchases like vehicles or laptops must be depreciated over time.
To stay on top of this, keep receipts and invoices for everything, record whether it was personal or business use, and check with your accountant if something should be depreciated or claimed outright.
Gifts, Meals, and Entertainment
In real estate, relationships are everything. Gifts and entertainment often help build trust and win business, but not all costs are fully deductible.
Food and drink gifts are generally only 50% deductible, while other gifts (that are not food or drinks) are fully deductible depending. Business meals are also 50% deductible if directly tied to income-earning activity.
Make sure you record the date, recipient, business link, and property related to the expense. And avoid claiming personal or family entertainment, it won’t fly with IRD.
Clothing, Grooming, and Presentation
Real estate is a presentation-driven industry, but the IRD is strict on what counts.
You can claim branded uniforms or logoed clothing. But you can’t claim everyday clothing (even if agency-required), grooming, cosmetics, sunglasses, or haircuts.
Home Office and Vehicle Use
Many agents work from home and spend long hours on the road. Both are areas where deductions can add up.
For home office expenses, you can claim a percentage based on floor area and business use. For vehicles, trips between open homes are deductible, while the daily commute usually isn’t (unless under special circumstances).
Keep a logbook to track business vs personal kilometres and record the square metres of your home office space and the hours used for business.
Other Claimable Expenses
Here are some common deductions worth double-checking:
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Advertising & marketing
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Stationery
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ACC levies
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Accounting software & fees
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Wages for personal assistants or salespeople you employ. Be careful employing your husband or wife. There are a couple of hurdles to jump with IRD.
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Training, seminars, and conferences directly linked to your role
Final Word
Real estate professionals often juggle complex expenses, and the IRD rules aren’t always black and white. A proactive approach, good records, clear purpose, and expert advice—can help you maximise your claims and avoid pitfalls.
Curious about which of your expenses qualify? Let’s chat and explore how to make your business more tax-efficient.
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