HomeReal Estate RealityQuick Tax Guide for the Self Employed in Real Estate
Quick Tax Guide for the Self Employed in Real Estate
Published Thursday, April 13, 2023
If you are a licensed Real Estate Broker, you are considered an independent contractor or self-employed which means that you are a business owner that provides services to others and will be receiving a 1099. By being self-employed you may take all the money you receive up front, but you are still responsible for paying the Self-Employment Tax and income tax during the tax season. With that being said, it is important to set aside about 25-30% of your income to cover that.
Although it may sound a bit intimidating there is an upside to all of that and that is you can write off many real estate business expenses on your taxes!
Here are some things that may qualify as tax deductions for a Real Estate Broker:
- Realtor dues and subscriptions
- Property promotions for your listings
- Seminars & workshops related to your real estate business
- Website & hosting fees that are applicable to your real estate business
- Desk fees paid to your real estate sponsoring broker
- Office supplies and business cards
- Car related expenses; parking, tolls, car insurance, car purchase, etc.
- Business meals, gifts, entertainment particularly for your real estate buyers or sellers
- Real Estate meeting related expenses
- Home office related expenses
- And more…
Check out the websites below for more information and of course always have a conversation with your accountant on what is best for your situation.
Sources:
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
http://https//www.irs.gov/newsroom/irs-reminds-taxpayers-of-april-estimated-tax-payment-deadline
https://www.keepertax.com/tax-write-offs/real-estate-agent
https://blog.stridehealth.com/post/real-estate-agent-tax-deductions
Recent Posts
-
The Importance of Fire Prevention and Ways to Create a Plan to Keep Everyone Safe.
Read more »
-
Interested in getting into Real Estate and you want to know what the process looks like? Click to find out what the 5 steps to getting your license are.
Read more »
-
Although the convenience of online shopping is very tempting, it pales in comparison to the experience of making some purchases in person. Especially if it is one of the biggest purchases you will ever make in your life.
Read more »
-
Being a real estate agent sounds enticing, doesn’t it? But do you really know what it entails?
Keep reading to find out more on what this exciting career is all about and if this is for you!
Read more »
All Posts »
-
-

Vince DePaul is Director of Your House Academy. Vince began his real estate career in 1976 and is a real estate broker and a licensed real estate and continuing education instructor. He has taught real estate at College of DuPage in Glen Ellyn, Illinois, and Oakton Community College in Des Plaines, Illinois for several decades. For ten years he produced and hosted a weekly, live call-in radio broadcast in Chicago called “Your House” where he was known as “Mr. Real Estate.” In 2015, Vince received the prestigious Educator of the Year award from the Association of Illinois Real Estate Educators (AIREE).
More about Vince »
A REALTOR® is a licensed real estate agent who is a member of the National Association of REALTORS®, (NAR) the largest trade group in the country.
Every agent is not a REALTOR®. You become a REALTOR® after you pass your real estate course, pass the state license exam, join a real estate company and then join the National Association of REALTORS®.
According to the NAR, the term REALTOR has one, and only one, meaning:
"REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics."
Michael Fair, President and Director of Your House Academy is an NAR member.