Business miles for real estate—like showings, open houses, client meetings, and property inspections—are 100% deductible. The daily commute between home and your first stop? That doesn’t count. Repairs and maintenance on the same vehicle? Deductible, but only to the extent you use the car for business.
Quick Fix Summary
- If you drive for real estate: track every mile you drive for business and every repair receipt you pay.
- If you own the car: deduct 100% of the business-use percentage of repairs; if you lease or finance, the same rule applies.
- File on: IRS Form 1040 Schedule C (sole props/LLCs) or Form 4562 for Section 179 depreciation on new purchases.
What’s happening with vehicle deductions for realtors?
As of 2026, the IRS still offers two ways to write off vehicle costs: the actual-expense method (track every oil change, tire rotation, or brake job) or the standard mileage rate (67¢ per mile in 2024, 66.5¢ in 2025, adjusted for 2026). Repairs get deducted in full the year they happen—no need to depreciate them over time unless they’re part of a major overhaul that extends the car’s life.
How do I actually deduct car repairs as a realtor?
1. Confirm eligibility and business-use percentage
- You must be self-employed—sole proprietor, independent contractor, single-member LLC, or partner in a real estate partnership.
- Figure out your business-use percentage: divide business miles by total miles. Say you drove 10,000 miles total and 7,500 were for real estate work—that’s 75% business use.
2. Pick your deduction method
| Method | Who it fits | What you need |
|---|---|---|
| Actual Expense | High-expense vehicles or heavy SUVs/trucks | Every repair invoice, parts receipt, and maintenance log |
| Standard Mileage | Lower-expense cars or high-mileage drivers | Miles driven log (date, starting location, ending location, purpose) |
3. Gather every repair receipt
- Hold onto itemized invoices showing the VIN, date, description (like “front brake pads and rotors, driver side”), and total amount paid.
- If you paid with a credit card, keep the statement as backup.
- Store digital copies in a folder named “2026-Vehicle-Repairs-[LastName]” so you can easily upload them in IRS-accepted formats.
4. Split the expense by business-use percentage
Multiply the total repair cost by your business-use percentage. Example: a $480 brake job × 75% business use = $360 deductible.
5. Report on Schedule C
- Open your tax software or go to IRS Free File.
- Navigate: Income → Business Income → Schedule C.
- In Part II, line 9 (“Car and truck expenses”), select “Actual expenses” and enter the business-use portion of repairs.
- If you used the standard mileage method, enter the business miles on line 9 and the software will handle the rest.
6. Keep supporting documents for 7 years
Hold onto receipts, logs, and invoices for at least three years after filing; if you claim a refund or credit, keep them for seven years. Store them in a password-protected cloud folder or a fire-resistant safe.
What if I can’t deduct my car repairs this way?
Alternative 1: Section 179 Deduction for a New Vehicle
Bought a new (to you) SUV, pickup, or van in 2026 with a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs? You might deduct up to the full purchase price under Section 179. File Form 4562 with your Schedule C. Example: a 2026 Ford F-150 with a 6,100-lb GVWR qualifies. Depreciation limits for passenger vehicles cap at $12,400 for cars and $13,100 for trucks/SUVs in 2026.
Alternative 2: Lease or Loan Interest
Financing or leasing your vehicle? The interest you paid in 2026 is deductible as a business expense on Schedule C (line 16a). Split it by business-use percentage. Keep the lender’s 1098-C or lease statement.
Alternative 3: Home Office + Commuting Exception
Got a home office as your principal place of business? Trips from your home office to a client site might count as business miles. The walk from your bedroom to the kitchen? That’s still a personal trip.
How can I avoid car repair headaches next year?
Use a mileage-tracking app (Everlance, MileIQ, or Zoho Expense) that runs in the background and flags personal trips. Schedule preventive maintenance every six months so small repairs don’t turn into big ones. Set aside 25% of every commission check in a separate “vehicle fund” so you’re never caught off guard by a $400 brake job. Keep a fireproof lockbox at home for original receipts—digital copies alone won’t survive an IRS audit.