Leasing Agent Fee Tax Deductions

[Lei Zhao]

Hi Everyone, I'm new to the bigger pockets forum. Since the tax season is right around the corner, I'm wondering that how can I write off my leasing agent fee?

I worked with one for the leasing agents at Austin area, but we didn't sign a contract to talk about his commission. Tenants directly gave him the deposit & first month rent. Later, he Venmo me with the rest of money after deducting his commission. Should I asked for formal contract?

[Eamonn McElroy]

Generally, lease commissions must be capitalized and amortized over the life of the lease.  There are exceptions that your tax professional can have the deep conversation with you about.

@Wayne Brooks

Not exactly.  OP would report the gross rent as if he received it, then offset with the applicable deduction -- either amortization or commission expense.

"Netting" and reporting the net number is what causes a lot of the matching notice problems with the IRS.