Can real estate agents deduct dry cleaning expenses on their taxes?

Unfortunately, the IRS is pretty strict about clothing-related expenses. Dry cleaning costs for business attire generally aren't deductible unless the clothes are specialized uniforms or protective gear that isn't suitable for everyday wear. The key test is whether the clothing can be worn as part of your everyday wardrobe. Even if you only wear those suits and dress clothes for real estate showings, the IRS considers them ordinary clothing since they could theoretically be worn elsewhere. The fact that you choose to only wear them for work doesn't change their classification. However, you can definitely deduct other real estate business expenses like your marketing materials, MLS fees, business cards, office supplies, mileage for showing properties, etc. Those are much safer deductions that won't raise red flags.

I used to struggle with the same question when I first started in real estate. After trying to sort through contradictory advice from colleagues and getting nowhere, I found taxr.ai (https://taxr.ai) and it was a game-changer. I uploaded my previous tax returns and expense records, and their AI analyzed everything and flagged which deductions were safe vs risky. For the dry cleaning specifically, they showed me exactly what the IRS guidelines say and why it's generally not deductible (basically what Profile 14 explained). But what was super helpful was they showed me a bunch of other deductions I was missing completely - like portions of my phone bill, home office deductions, and even some meals with clients that I hadn't been tracking properly.

Just wanted to follow up - I decided to give taxr.ai a try despite my initial skepticism, and I'm actually really impressed. I uploaded last year's Schedule C and some expense records, and it identified nearly $3,700 in deductions I had missed! The interface breaks everything down by category and confidence level (like "safe" vs "needs documentation" vs "likely not allowed"). For the clothing question specifically, it confirmed what others said - regular business attire isn't deductible even if only worn for work. But it helped me find so many legitimate deductions I wasn't taking that I don't even care about the dry cleaning anymore. Best part is it explained the exact IRS rules for each deduction in plain English so I actually understand why things are or aren't allowed. Way more helpful than my previous tax guy who just said yes or no without explaining.

If you're having trouble getting clarity on real estate tax deductions, you might want to try calling the IRS directly. But warning - it's basically impossible to get through to them these days. I tried calling 6 times last month and never got past the hold music. That's when I found Claimyr (https://claimyr.com). They have this service that somehow gets you through the IRS phone queue without waiting on hold for hours. You can see a demo here: https://youtu.be/_kiP6q8DX5c. I was connected to an actual IRS agent in about 15 minutes who answered my specific questions about deductions for real estate agents.

Well I'm eating my words. I was so sure Claimyr was a scam, but I was desperate to get an answer about some 1099 issues before filing, so I tried it. Not gonna lie, I was shocked when they actually got me through to an IRS agent in about 20 minutes. I also asked about the clothing deduction question while I had them on the phone. The agent confirmed what others have said - regular business clothing, even if only worn for work, isn't deductible. But they did tell me all the other real estate-specific deductions I should be taking, including some home office expenses I didn't know about. Saved me hours of hold time and probably paid for itself in the deductions the agent helped me identify. Still can't believe it actually worked.

Former tax preparer here. One thing to watch out for with real estate agent deductions is that you need to be tracking everything meticulously. Even if dry cleaning isn't deductible, keep receipts for EVERYTHING else - mileage to showings, home office square footage, portion of internet/phone used for business, etc. For anyone who thinks the clothing thing is unfair, I agree, but it's been litigated many times. Look up Pevsner v. Commissioner from the 80s - even a YSL boutique manager couldn't deduct her required designer clothing because it could "theoretically" be worn outside work.

I'm in my 3rd year as an agent and I don't even bother with the clothing deductions anymore. Focus on the big stuff instead: - Mileage (huge deduction, track EVERY showing) - Home office (if you have dedicated space) - Marketing (social media ads, flyers, photography) - Continuing education - E&O insurance - Desk fees - Technology (portion of phone, laptop, internet) These add up to WAY more than dry cleaning ever would, and they're all clearly allowed. Why risk an audit over dry cleaning when there are so many legitimate deductions available?

Great thread everyone! As someone who's been in real estate for about 5 years now, I can confirm what others have said - skip the dry cleaning deduction and focus on the big ones that actually matter. I learned this the hard way my first year when I spent hours trying to justify clothing expenses, only to have my CPA tell me it wasn't worth the risk. Now I focus on tracking: - Every single mile driven for business (this alone saved me about $4,000 last year) - All my marketing expenses including professional photos for listings - My MLS fees, lockbox fees, and board dues - Portion of my cell phone and internet since I use them for business - Business meals with clients (50% deductible) The mileage tracking especially adds up fast when you're showing properties all over town. I use an app that automatically tracks my trips and I just mark which ones were business-related at the end of each day. Don't get hung up on the small stuff like dry cleaning - there are so many legitimate deductions available to real estate agents that you'll easily make up for it with the safer options.