1. Have a CPA, who specializes in real estate agents, prepare your tax return. You need to have someone who knows all of the deductions applicable to your business. Otherwise, you may very well miss deductions and pay too much taxes.

2. Keep track of all of your expenses. Use a good software program, such as Quicken, to make sure you do not miss any deductions.

3. Income tax rates range from 10% to 35%. Real estate agents are also affected by the self-employment tax, which is 15.3%. If you are an average taxpayer, in the 28% tax bracket, your combined taxes could be 43.3% (28% income taxes plus 15.3% self-employment taxes).

For every $100 in deductions the wrong preparer misses, you pay an extra $43.30 of taxes. Too many missed deductions may add up to a hefty amount.

4. Keep track of all of your cash receipts. A cash receipt is any receipt, for which you pay for a business related item, with cash. Frequently real estate agents purchase items, for their business, and do not get cash receipts.

5. If you are not sure if something is deductible keep the receipt anyway. Then when you have your taxes prepared ask your preparer if these questionable items are deductible.

6. You need a good book on the financial aspects of your business. My book is the best book I know of, that deals with the vital financial and tax areas of your business.

7. Keep track of your vehicle expenses. When possible I compare a client's mileage for the year with their actual vehicle expenses. This way I can see which method yields the greater deduction.

8. Have a good CPA on your real estate team. As a successful real estate agent you have a good team working with you - title company, escrow agent, the broker of your office, etc. Add a good CPA to give you financial support.