Here is a list of the lessons in this course and a brief description of what you'll learn in each lesson.
- Introduction to the Course
An introduction, a bit of legal housekeeping and tips on how to make the most of this course.
- Hobby vs Business
Do you have a hobby or a business? We look at the tax implications of having a hobby vs a business and how you can determine which applies to your situation.
- Self Employment Taxation
In this lesson we look at the differences between being an Employee and being Self-Employed, including considerations for those that are self-employed (budgeting, self-employment tax responsibilities, minimizing tax burden), the taxes that you pay (Self-Employment, Federal Income, State Income Tax) and how much you can save with proper record keeping from legitimate deductions.
- Recordkeeping / Proving Deductions
In this lesson we look at something that is absolutely vital when trying to minimize your deductions: Record Keeping and Proving Deductions. For tax purposes, the burden of proof is on you, the taxpayer, to prove the deductions that you take. This lesson will show you how to maintain a history of your expenses and the information about the expenses that are required to prove the deduction.
- Introduction to Schedule C and 1099-MISC
In this lesson we will introduce you to Schedule C and Form 1099-MISC. You will learn whether or not you need to file Schedule C and learn about the sections of Schedule C (including the importance of the Business Activity Code number for Real Estate agents). Additionally, we will help you determine whether or not you need to provide a 1099-MISC Form to an individual or unincorporated business.
- Income, Deductions and Startup Expenses
In this lesson we will discuss cash basis accounting, income for realtors (and what it does, and does not, include) and define what a deductible expense is for tax purposes. We will also discuss startup expenses and how they apply to realtors.
- Advertising
In this lesson we will discuss Advertising, Line 8 of your Schedule C. We help define the advertising category and give you examples of deductible advertising expenses.
- Introduction to Auto Expense & Home Office Deduction
Auto and mileage expenses are often the largest tax deduction available to real estate agents—yet they are also one of the most audited and commonly denied deductions by the IRS.
In this lesson, you will learn exactly how realtor mileage deductions work, how to prove them properly, and how to avoid the mistakes that cause agents to lose thousands of dollars in tax savings. Complex IRS rules are broken down into clear, real-world examples designed specifically for realtors and independent contractors.
Whether you are a full-time or part-time agent, this lesson shows you how to legally maximize your auto expense deduction while staying fully compliant with IRS requirements
- Auto Recordkeeping & Standard Mileage Rate
Auto mileage is often the largest deduction for real estate agents—and one of the most scrutinized by the IRS. In this lesson, you’ll learn exactly what records you must keep to substantiate your mileage deduction and how to properly use the standard mileage rate to maximize your tax savings while reducing audit risk.
You’ll see the difference between the ideal contemporaneous mileage log, a more functional real‑world tracking method, and the risky reconstructed approach that can cost you deductions. The lesson also walks through how mileage is calculated, reported, and ultimately shown on your Schedule C.
- Actual Auto Expense Deduction
Claiming actual auto expenses can generate a larger tax deduction than the standard mileage rate—but it comes with higher complexity and increased IRS audit risk. This lesson explains when the actual expense method makes sense, who should use it, and how to stay compliant.
You’ll learn how business‑use percentage drives deductions, why organized records are critical, and how depreciation, multi‑vehicle strategies, and leased vehicles affect your tax return. This lesson is best suited for full‑time Realtors with dedicated business vehicles.
- Auto Depreciation
This lesson explains how auto depreciation works when real estate agents use the actual expense method instead of the standard mileage rate. Auto depreciation is one of the most complicated areas of the tax code, especially for vehicles, and it is a frequent source of IRS errors and audits. The video walks through the core depreciation concepts Realtors need to understand, including straight-line depreciation, bonus depreciation, and Section 179, while emphasizing how vehicle type, weight, and usage determine what deductions are allowed.
Brett Hersh also explains why depreciation rules differ between passenger vehicles, SUVs, trucks, vans, and specialty vehicles, and how IRS Code Section 280F limits deductions for most commonly driven cars. The lesson highlights the risks of software-based tax preparation, the tax consequences of selling or trading in depreciated vehicles, and why proactive tax planning with a professional is critical before purchasing a business vehicle.
- Home Office Deduction Overview & Simplified Method
Having a qualified home office is generally a relatively small deduction, but it is the key to maximizing your auto deduction! This lesson will tell you what you must do to have a qualified home office. It will also cover the easiest, least risky way to claim the home office deduction, the Simplified Method.
- Actual Cost Intro & Calculating Your Square Footage Percentage
Using the actual cost method can benefit those who have a large home office relative to the size of their home. It may also benefit renters and those who have high expenses such as utilities, property tax, and mortgage interest. The actual cost method can be quite complex. Like using the actual cost method for your auto, it requires substantial recordkeeping and forces you to depreciate a portion of your home. If you know you will be using the simplified method, you can save this lesson for later.
- Home Office Actual Cost Direct and Indirect Expenses
This lesson breaks down direct vs indirect expenses under the Actual Cost Home Office Method for real estate agents. You learn how expenses are classified on Form 8829, why most home office costs are indirect, and how improper entry can either reduce or completely eliminate otherwise valid deductions.
The lesson walks through real‑world examples Realtors commonly miss, including mortgage interest, property taxes, rent, insurance, utilities, repairs, HOA fees, and depreciation. It also explains why carryovers matter and why using consistent tax software year‑to‑year is critical when claiming the actual cost method.
- Home Office: Actual Cost Method Depreciation of Home Office
This lesson explains how home office depreciation works under the Actual Cost Method and why it is one of the most commonly misunderstood and mishandled parts of Form 8829.
You learn how to properly calculate depreciation using the lower of adjusted basis or fair market value, why land value must always be removed, and how depreciation can create taxable events years later when you sell your home. The lesson also emphasizes record retention, depreciation schedules, and why switching tax software or professionals without proper documentation can create long‑term problems.
- Commissions, Contract Labor, Depletion
This lesson explains how Realtors should properly report commissions, contract labor, and depletion on Schedule C and why misclassification is one of the most dangerous tax mistakes in real estate.
You’ll learn the difference between commissions and advertising fees, how the IRS determines whether someone is a contractor or employee, when 1099‑MISC filings are required, and why retroactive reclassification can result in penalties and back taxes. The lesson also clarifies what depletion is, when it applies, and why most Realtors will never encounter it.
- Depreciation
This lesson explains how depreciation works for Realtors and why Schedule C Line 13 is one of the most common error areas on tax returns.
You’ll learn the difference between expensing and depreciating assets, MACRS class lives, software amortization, listed property rules, business‑use requirements, converted personal assets, depreciation recapture, and how asset sales are reported. The lesson also explains why depreciation errors compound year after year and why professional guidance is often recommended.
- Benefits, Insurance, Interest, and Professional Fees.
This lesson explains Schedule C Lines 14 through 17 for Realtors, covering employee benefit programs, insurance deductions, business interest rules, and legal and professional fees.
You’ll learn how employee classification affects deductions, which insurance policies qualify, how mortgage and credit card interest must be reported, why tracing rules matter, and where professional services truly belong on your return. The lesson also highlights common mistakes that trigger IRS letters and penalties.
- Office Expenses, Pensions & Rents
In this lesson, we discuss Office Expenses, Line 18 of your Schedule C, Pensions and Profit Sharing Plans, Line 19 of your Schedule C and Rents or Lease, Line 20 of your Schedule C.
- Repairs, Supplies & Taxes
In this lesson, we discuss deductible Repairs and Maintenance related to running your business, Line 21 of your Schedule C, deductible Business Supplies, Line 22 of your Schedule C, and business Taxes and Licenses, Line 23 of your Schedule C.
- Travel: Intro and Four Basic Tests
This lesson introduces IRS travel deductions for real estate agents, focusing on Schedule C Line 24A. Brett explains why travel is highly scrutinized, where agents commonly go wrong, and how misinformation spreads through brokers, peers, and social media. The lesson walks through the four IRS travel tests, with special emphasis on the primary business purpose rule. Agents learn how business days are defined, how travel days are calculated, and when mixed personal and business trips fail deductibility tests.
The goal is not aggressive deductions, but defensible, well-documented deductions that survive IRS review.
- Travel: Deductible Trips & Substantiation
This lesson completes the IRS travel deduction framework for real estate agents. Brett introduces sandwich days and explains how days between business activities can legally count as business days when staying put is cheaper than traveling home. He walks through multiple real-world examples showing how the 50 percent business rule determines whether travel is deductible at all.
The lesson then breaks down exactly which expenses are deductible when a trip qualifies, including travel, lodging, rentals, and direct business costs. Brett emphasizes recordkeeping as the number one factor in surviving IRS scrutiny, detailing the receipts, logs, calendars, and third-party proof agents must retain. The lesson closes with warnings on high-risk deductions such as cruises, foreign travel, and conventions that look like entertainment.
- Travel: Deductible Travel Meals
This lesson introduces how business travel meals are deducted on Schedule C Line 24B. Brett explains that travel meals are generally deductible at 50 percent and highlights a common problem where taxpayers and preparers miscommunicate whether amounts provided are gross or already reduced. He explains why this error quietly reduces deductions.
The lesson compares the actual expense method and the standard meal allowance, stressing that taxpayers must choose one method for the entire year. Brett walks through multiple examples showing how travel days, partial days, personal days, and accompanying spouses affect the calculation. He also explains why tracking days and keeping receipts can materially increase deductions, even when per diems are used.
- Local Business Meals
This lesson covers the two types of business meals that are deductible: 1) Meals "directly related" to the conduct of business and 2) Meals "associated with" the active conduct of business.
- Business Meals, Special Situations & Substantiation
This lesson will share instances when your spouse and family members' meals will be deductible. It also discusses tax rules related to going "dutch" on meals, meals related to network meetings, meal costs reimbursed by others, and food that can be 100% deductible. It will also share the proof that one must have to substantiate their business meal deduction.
- Utilities and Wages
In this lesson, we look at Utilities, Line 25 and Wages, Line 26 of your Schedule C.
- Other Expenses, Pt 1
In this lesson, we look at Line 27A and Line 48 of your Schedule C, Other Expenses. These are expenses that are not reported on any of the previously discussed lines. Items include Bank Fees, Cell Phones (and how to audit proof your cell phone deduction), Charitable Contributions and Clothing / Uniforms.
- Other Expenses, Pt 2
This is part two of our discussion on Line 27A & Line 48 of your Schedule C, Other Expenses. In this lesson, we discuss Continuing Education, Credit Card Fees, and Dues & Subscriptions.
- Other Expenses, Pt 3
This is part three of our discussion on Line 27A & Line 48 of your Schedule C, Other Expenses. In this final lesson, we discuss Gifts (the gift limit, notes on gifts and how to prove the gift deduction), Listing Fees, Lock Boxes & Entry Systems and some final notes on Other Expenses.
Overnight