Frequently Asked Questions

The IRS requires a contemporaneous mileage log — you record each trip at or near the time it happens with the date, destination, business purpose, and miles driven. Apps like ProvExpense log trips automatically with GPS so there's nothing to reconstruct at year-end. Keep the log for at least 3 years after filing (6 years if there's a substantial understatement of income). The 2026 IRS standard mileage rate for business driving is $0.70 per mile.

Realtors can deduct vehicle mileage (at the 2026 IRS rate of $0.70/mile), home office expenses, marketing costs (MLS fees, yard signs, photography), professional dues (NAR, TAR, TREC license renewal), E&O insurance, continuing education, phone and internet (business-use portion), office supplies, software subscriptions, and 50% of business meals. All of these are claimed on Schedule C as ordinary and necessary business expenses. See our full deductions guide for every category with 2026 amounts.

Technically, the IRS does not require written receipts for business expenses under $75 — but you still need to document the amount, date, business purpose, and vendor in your records. In practice, keeping every receipt (even small ones) is the safest approach because auditors look for documentation gaps, not just missing receipts over the threshold. Digital receipt capture apps make this easy: snap a photo at the time of purchase.

ProvExpense is a self-employment expense tracker built for realtors and independent contractors. You log expenses with receipt photos, track business miles with GPS, record 1099 and W-2 income, and manage client W-9s — all in one place. The built-in tax estimator calculates your quarterly estimated SE tax automatically. Start free — the free plan covers all core tracking features.

Yes — the core features are free: expense logging, mileage tracking, income recording, and tax estimation. The Pro plan ($4.99/month) unlocks PDF expense reports, IRS-compliant mileage log exports, and annual tax archives. There's no credit card required to start.

Yes. Pro plan users can generate a full-year expense report PDF and download it to share with their accountant or tax preparer. The report includes itemized expenses by category, mileage totals with IRS deduction calculations, and income summaries. You can also export specific date ranges for quarterly review meetings.

The IRS standard mileage rate for business driving in 2026 is $0.70 per mile. Medical and moving mileage (active military only) is $0.21 per mile, and charitable driving is $0.14 per mile. A realtor who drives 15,000 business miles in 2026 can deduct $10,500 using the standard rate — which also reduces the self-employment tax base, saving an additional ~$1,480 in SE tax. See our full mileage deduction guide.

Only miles driven for business purposes are deductible — commuting, personal errands, and recreational drives don't count. The cleanest approach is to log every business trip individually with its purpose (showing, open house, title company, supply run) and let the personal miles simply be whatever's left. ProvExpense lets you start a trip, drive, and confirm the business purpose when you're done — it auto-calculates the IRS deduction in real time.

The IRS accepts electronic receipts and digital images of paper receipts, as long as they're legible and show the amount, date, vendor, and nature of the purchase. You don't need to keep original paper receipts if you have a clear digital copy. Store your receipt images in a cloud-backed app so they're accessible even if you change devices.

The IRS generally has 3 years from your filing date to audit your return, so keep receipts for at least 3 years. If you omit more than 25% of gross income, the window extends to 6 years — so keeping records for 6 years is the safest default. There's no deadline on audits for fraudulent returns. For mileage logs specifically, keep them for the same 6-year window as other business records.

Yes — you can deduct the business-use portion of your phone bill. The IRS doesn't require 100% business use; it requires an honest allocation. Most full-time realtors use their phone heavily for calls, MLS apps, GPS, email, and property photos — a 70–80% business allocation is commonly used and defensible if you can describe the business activities. For a $120/month phone bill at 75% business use, that's $1,080 deductible per year.

The best system captures receipts at the moment of purchase, not at year-end. Snap a photo with your phone, assign a category and business purpose right then, and let the app build your deduction log automatically throughout the year. Doing it at the time of purchase takes 30 seconds; reconstructing a year's worth of expenses in March takes days — and you'll miss deductions. ProvExpense handles receipt capture, auto-categorization, and report generation so tax season is just an export.