Many real estate agents can shave thousands of dollars off their tax bill by deducting their business driving expenses.

The most popular way to calculate this deduction is to multiply the number of business miles driven by the standard mileage rate set by the IRS, which is 57.5 cents in 2015.

Because many agents don’t keep exact records of the number of their business miles, lots of agents underestimate them, resulting in lost savings.

Part of the idea behind the mobile app Deductr is to help people avoid leaving money on the table when claiming deductions for business driving expenses.

Users can track every mile they drive by tapping their smartphone when they begin driving and tapping again when they finish. The app uses GPS to log the distance traveled during trips.

In the future, Deductr will automatically track miles for users, eliminating the need to manually initiate and end tracking. Users will be able to review their log of miles periodically and weed out nonbusiness trips.

MileIQ, another app that lets users track their gas mileage, already offers such functionality, which it calls “Smart Drive Detection.”

But Deductr can also help real estate agents keep tabs on other business expenses, such as meals with clients, closing gifts, mobile phone bills and office fees.

The app lets users capture images of receipts, and integrates with credit or debit card accounts so that users can import records of purchases rather than manually input them.

The second feature is particularly helpful for deductions claimed on expenses of $75 or less, since a person isn’t required to keep receipts to substantiate such expenses.

Deductr can also host multiple user accounts, meaning a team of agents part of a business could log all their miles into a single account.

When tax season rolls around, users can generate a comprehensive report of expenses and hand it over to an accountant.

“Whereas [accountants] used to hate you because you were the guy who walked in with a shoebox, now you’re organized [and] he does a better job for you,” said Deductr CEO John Thomas.

Thomas said Deductr has been around for six years, but began targeting real estate agents last year after being accepted into REach, a tech accelerator program run by Second Century Ventures, the venture capital fund of the National Association of Realtors.

The accelerator helped REach forge connections that have evolved into partnerships with real estate companies including Re/Max, which offers the app to its agents at a 50 percent discount, Thomas said.

The app’s retail price is $20.

Email Teke Wiggin.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription