Form 2106: Employee Business Expenses
Form 2106 was historically used to deduct unreimbursed employee business expenses. The Tax Cuts and Jobs Act of 2017 suspended this deduction for most employees through 2025, with limited exceptions.
Current Status (2018-2025)
- Suspended: Unreimbursed employee expense deduction eliminated
- Exceptions: Armed Forces reservists, performing artists, fee-basis officials
- Scheduled to return: Potentially available again in 2026
Real Estate Agent Expenses
- Most agents are independent contractors (statutory nonemployees)
- Report expenses on Schedule C, not Form 2106
- Schedule C deductions are more advantageous (no AGI threshold)
- Can create business losses to offset other income
Common Agent Deductions (Schedule C)
Vehicle expenses, marketing, office rent, technology, licensing fees, MLS dues, continuing education, insurance, and professional development.
Related Terms
- Contract — Agent independent contractor agreements
- Closing — Commission income from closings
- Equity — Tax savings build personal equity
Barnes Walker Business Law
Barnes Walker's attorneys advise Florida real estate professionals on tax classification and business expense strategies. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC