Real estate agents spend a lot of time on the road. Meeting clients, hosting open houses and attending realtor-sponsored events are just some things that require a car. As such, real estate agents need to be able to track their mileage. This will help them claim deductible miles on their taxes.
Accurate Records
As a real estate agent, you must travel to and from various locations for client meetings, mortgage lender offices and government buildings to deal with property records. These trips can easily add up to many miles, so keeping accurate records when filing your taxes is essential. However, this doesn’t mean you need to track each of your trips by hand. Rather, you can use an app that automatically detects when your vehicle starts moving and record all your miles. With a finger swipe, you can also classify your drives as work-related or personal. This is especially helpful when it comes to tax filing and reimbursements. As a result, you can avoid year-end surprises and know exactly what your taxes will be for each quarter. These apps make it easy to separate your personal and business expenses from claiming mileage deductions that maximize your return.
Tax Deductions
Real estate agents spend a lot of time on the road. They often drive to potential and current clients’ homes or offices, as well as to mortgage lender offices, government buildings that deal with property records, and home inspection company offices. Keeping track of mileage is one of the most significant tax deductions for real estate agents. The IRS wants to know how much time you spend on business-related travel.
A good mileage tracking app will help you keep your mileage logs up to date, ensure that you receive accurate reimbursements and compute your IRS tax deductions accurately. Mileage apps, such as MileIQ, can also automatically classify drives as business or personal, making it easy to categorize expenses when reimbursed. Some even allow users to swipe for business-related or personal-related miles, making it easier to claim the correct tax deductions at the end of the year.
Real-Time Reports
A mileage tracking app for real estate agents is a great tool to use when it comes to generating real-time reports. This type of reporting is a business intelligence (BI) feature that allows users to access up-to-the-minute information to make decisions faster. This can be beneficial for various reasons, such as accelerating decision-making, delivering better customer service, and avoiding time-sensitive issues. It also makes it easier to monitor progress and keep an eye on obstacles. It can also help businesses set goals, identify weaknesses, and lock in growth opportunities. By reviewing these reports regularly, companies can promptly improve their strategy and achieve their objectives. Google Analytics features a real-time report showing how people react to your marketing campaigns. This feature is handy for measuring the response of a promotional campaign on Twitter or social media. It’s also a great way to measure how your website is performing. This is especially useful if you change your website or implement new marketing strategies.
Ease of Use
A mileage-tracking app can save you hours in the long run. It’s easy to record your mileage, submit it for reimbursement, and even track all your expenses. In addition, a mileage tracking app will automatically create IRS-compliant reports that make tax filing and audits easier. These reports will ensure that you can claim your business miles as a tax deduction. Another great feature is the ability to set geofencing on a specific area and has the app clock you in and out as you work in that region. This helps realtors track their location and time more accurately so they can be reimbursed for the appropriate amount of mileage.
The app also offers automatic expense categorization that syncs to your bank accounts, making matching receipts and bank transactions easy. These apps are perfect for real estate agents who want to stay on top of their miles and get full reimbursement. Using the right mileage tracking app will also help you keep track of all your business expenses to maximize your taxes each year.
Customization
Real estate agents spend much time on the road, touring homes with clients or driving to mortgage lender offices or home inspection company offices. That means they spend a lot of time commuting, and it’s not always easy to keep track of all their trips. A mileage app can make tracking trips easier and less stressful. That means less time spent on inefficient manual processes, like submitting travel expense reports, and more time focused on growing your business. Using a mileage tracker can save you money by cutting down on the cost of reimbursements and making sure your records are accurate. It can also help you remain organized and stay compliant with IRS regulations.