Tax and Bookkeeping Help for Real Estate Agents and Brokers
Most real estate agents are independent contractors, so commissions arrive without tax withheld and income can swing from month to month. Add mileage, marketing, licensing and brokerage fees, and taxes can get complicated quickly.
Raymond G. Kenney, CPA works directly with real estate agents and brokers. Ray helps you track expenses, plan for estimated taxes and decide whether a different setup makes sense as your business grows.
Common Challenges and How Ray Helps
- 1099 commission income. Ray reconciles the 1099s you receive from your brokerage with your own records and reports your income correctly on Schedule C or your business return.
- Estimated taxes. With no withholding and uneven closings, quarterly estimated taxes are easy to fall behind on. Ray helps you set aside the right amounts throughout the year.
- Vehicle and mileage. Agents drive a lot. Ray explains the standard mileage and actual expense methods and the records you need, like a mileage log, to support the deduction.
- Marketing, licensing and other deductions. Advertising, signs, websites, MLS and association dues, license renewals, continuing education and desk fees may be deductible. Ray helps you capture them properly.
- S-corp for high earners. When commissions are consistently strong, an S-corp election may reduce self-employment tax. Ray walks through the trade-offs. See Should Your Business Be an S-Corp?.
- Bookkeeping. Ray can set up simple bookkeeping so commissions and expenses are tracked all year, not sorted out in April.
Related Services
- Year-round tax planning: estimates and timing around closings
- Individual tax preparation: including Schedule C
- Should your business be an S-corp?: an overview of the election
- S-corp and C-corp tax preparation: for incorporated agents
- Monthly bookkeeping: commissions and expenses tracked monthly
- QuickBooks setup and optimization: a clean, simple file
- Frequently asked questions: quick answers about working with Ray
Why Work With Ray
Ray is a licensed New York CPA in practice since 2015 and a member of the AICPA and the NYSSCPA. You deal with him directly, from your first call through filing, and he’ll explain things in plain language.
Work With Ray From Anywhere
Prefer to work remotely? Ray works with clients locally and remotely across the U.S. by phone, video and email. Work with Ray from anywhere.
Frequently Asked Questions
Are real estate agents considered self-employed?
Most are. Agents who meet the IRS rules for qualified real estate agents are generally treated as independent contractors for federal tax purposes, so commissions are subject to self-employment tax and estimated payments are usually required.
Should I use standard mileage or actual vehicle expenses?
It depends on your vehicle, how much you drive and your costs. Either way, keep a contemporaneous mileage log. Choosing the standard mileage rate in the first year can affect your options later, so it's worth reviewing early.
Should a real estate agent form an S-corp?
It may help when commissions are steady and strong, but you'd need to pay yourself a reasonable salary and file a separate return. Ray can compare the numbers for your situation.
Get Started
Have questions about your situation? Talk with Ray. Monday–Friday, 9–5.