The Tax Cuts and Jobs Act is a benefit to the real estate industry in two significant ways, as discussed at the Commercial Legislation & Regulatory Advisory Board meeting at the REALTORS® Conference & Expo in late 2018. The creation of Opportunity Zones. These areas have been officially designated by the IRS as lacking investment. Individuals, corporations, businesses, REITs, estates, and trusts can benefit from large tax incentives for investing in Opportunity Zone funds that support real estate development in these areas. For instance, Opportunity Zone investors can legally avoid …

Although the digital age is changing so many dynamics in the real estate business, the tax process is mostly business as usual. Most agents are still considered independent contractors or self-employed sole proprietors. In most of all cases, that means that no taxes are withheld from your commission checks; therefore, you’re responsible for paying taxes four times a year (quarterly). These are called “estimated taxes,” an educated guess as to how much you will be earning and the resulting percentage you will pay in taxes. These estimated taxes are used …

tax filing

Many people envy the lifestyle of the self-employed. You set your own hours, you don’t have a traditional boss to whom you are accountable, and in theory, you have unlimited earning potential. The main downside to all of this freedom is your increased tax burden – both paying them and preparing your returns. Many self-employed real estate professionals must make quarterly tax payments or risk IRS penalties and fees. You’re also required to pay the portion of Medicare and Social Security typically covered by an employer. Because of this greater …

Tax tips for real estate agents

A great many deals with clients and business partners are closed over a lunch, golf outing or fancy dinner. Indeed, nothing is quite as conducive to icing the deal than having a bite together in a nice eatery. The nice thing about business meals and entertaining clients in general is that they are a legitimate business expense and therefore deductible from your taxes. The bad thing is not all meals and entertainment expenses are deductible so you have to be careful what you declare on your taxes. In this blog post …

Tax tips for real estate agents

A great many deals with clients and business partners are closed over a lunch, golf outing or fancy dinner. Indeed, nothing is quite as conducive to icing the deal than having a bite together in a nice eatery. The nice thing about business meals and entertaining clients in general is that they are a legitimate business expense and therefore deductible from your taxes. The bad thing is not all meals and entertainment expenses are deductible so you have to be careful what you declare on your taxes. In this blog post …

Tax savings for real estate agents

What follows is a post we borrowed from the Intuit TurboTax blog about tax write-offs for the self-employed, which included real estate agents. Please enjoy this incredibly instructional post about how you can maximize your tax savings for  2015. With self-employment comes freedom, responsibility, and a lot of expense. While most self-employed people celebrate the first two, they cringe at the latter, especially at tax time. They might not be aware of some of the tax write-offs to which they are entitled. When it comes time to file your returns, …