Why Real Estate Agents Should Track Their Miles

Agents who use mileage tracking apps can benefit from more than just tax deductions

Apps like Beans Tour allows agents to track mileage for tax deductions.

The two ways to claim a mileage tax deduction

There are two ways an agent can calculate their work-related vehicle costs: standard mileage rate and actual expense.

1) Standard mileage rate

The standard mileage rate hinges on the yearly rate set forth by the IRS. For 2021, the IRS allows a 56 cents claim per business mile driven. That means that for every 1000 miles driven, $560 can be deducted from an agent’s taxable income.

2) Actual expense

The actual expense deduction is typically best for agents that have high car payments or drive less than 10,000 miles per year. Calculating an actual expense deduction is slightly more complicated than standard mileage rate because it requires agents to figure out all the money they’ve spent in order to operate their vehicle for work purposes.

  • Lease payments
  • Gas
  • Oil changes
  • Tire rotations
  • Auto insurance
  • Title, licensing, and registration fees
  • Vehicle depreciation
  • Brake pad replacements
  • Other various maintenance work

Best app for mileage tracking

There are many mileage tracking apps available to choose from. Due to this, agents should select an app that also serves to help them close more deals and build better agent-client relationships, like Beans Tour.

Beans Tour makes it easy to track mileage and label trips as either business or personal.

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