tag:blogger.com,1999:blog-6747929661464411700.post6904965453095225019..comments2023-03-23T07:14:38.482-04:00Comments on The Super Tax Genius: Real Estate Agent Tax GuideSuper Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.comBlogger64125tag:blogger.com,1999:blog-6747929661464411700.post-14493352996634811372017-11-12T19:29:50.359-05:002017-11-12T19:29:50.359-05:00That will work. It's about the final tax bill...That will work. It's about the final tax bill...not how the government gets it.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-31853157573571150152017-11-01T12:56:01.864-04:002017-11-01T12:56:01.864-04:00Hey! Great blog & advice. This is my first yea...Hey! Great blog & advice. This is my first year as a real estate agent and I also have a full-time job as well. Quick question: Since I have a full-time job that does withholding, can I just have them withhold extra amounts on every paycheck instead of paying quarterly taxes on my real estate commissions? I can adjust the amount to withhold every single paycheck at will but I'm not sure if this will work.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-68644695587342167182017-05-26T01:32:34.951-04:002017-05-26T01:32:34.951-04:00At that level of income, there's alot more you...At that level of income, there's alot more you can than the guidance above. With regards to electing to be taxed as an S-Corp, you have to have another entity already established because an S-Corp really isn't an entity, but rather a tax election. There are other options you can consider to ease your tax burden:<br /><br />1. Work with a CPA (like me) to provide you with a comprehensive tax plan that highlights the tax savings opportunities you can take advantage of.<br /><br />Here are some you can consider:<br /><br />a. Make sure you are in the correct business entity (as stated above). Sole Proprietorships reported on Schedule C's are the most often audited by the IRS.<br /><br />b. Hire your family, that opens you up to additional tax savings...there is an age limit which is seven years old. If established correctly, you can pay for expenses you would have incurred as a parent, grandparent, or spouse as a business expense instead of a personal expense legally (braces, private school, medical expenses, etc).<br /><br />c. Establish a Section 105 or Medical Expense Reimbursement Plan<br /><br />d. Establish a CHIC (Closely Held Insurance Company) - You essentially establish an insurance company to sell yourself things like professional liability insurance and the premiums are all deductible business expenses to reduce your net income and tax burden. At retirement time, the capital of the insurance company is available to you similar to a retirement account...but without all the strings of a 401K or other qualified plans. Oh...there is no limit on how much the "premiums" are on an annual basis. Guillermo A. Birmingham, CPAhttp://www.dcmetrotax.comnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-54396213016338771412017-05-16T13:34:05.288-04:002017-05-16T13:34:05.288-04:00Hi, I came across your blog by accident and I it i...Hi, I came across your blog by accident and I it is a few years old, but it is sound advice. I am not in the real estate business, I am an independent insurance salesman and I gotta say, this is excellent advice for people in my industry too. Thank you.Anonymoushttps://www.blogger.com/profile/04035394917385234753noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-66372071649089248712017-04-05T16:51:04.559-04:002017-04-05T16:51:04.559-04:00Vehicle expenses, parking and tollsVehicle expenses, parking and tollsSuper Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-50787983035059649562017-03-31T17:31:46.491-04:002017-03-31T17:31:46.491-04:00Thanks for sharing, given a lot of great advice to...Thanks for sharing, given a lot of great advice to me as a new starter. Quick question, I live in NYC and sometimes i have to meet my customer in Jersey, does the toll fee also could count as business expense? which category should i use in Schedule C, thanksyuesehttps://www.blogger.com/profile/09992704380155080645noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-21366705505179768852017-02-08T15:21:45.395-05:002017-02-08T15:21:45.395-05:00Membership is a resounding no. Lunches with clien...Membership is a resounding no. Lunches with clients or serious potential clients is a yes. Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-86081805230461976162017-02-07T19:19:47.464-05:002017-02-07T19:19:47.464-05:00I joined a tennis/golf club this year feeling it w...I joined a tennis/golf club this year feeling it would let me gain exposure and entertain potential clients. I have used it for business lunches, and a few times for tennis.<br />Is there any way to deduct some of the fees for business expenses?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-48832242367460057522017-01-29T19:22:47.826-05:002017-01-29T19:22:47.826-05:001099misc1099miscSuper Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-846655995678038102017-01-29T13:07:37.030-05:002017-01-29T13:07:37.030-05:00Hello, Early Last year 2016 as a Real Estate Agent...Hello, Early Last year 2016 as a Real Estate Agent I made a Commission that escrow made payable to my name. I deposited the commission check for the full amount into my Bank and had to pay My office its 30% Commission split. I gave W-9 form to my office At the time was in process of becoming a Corp. But not formally my office Manager signed the W-9 as a S Corp. and Tax ID #. What 1099 form do I use to report the Commission split I paid my office? 1099-S or 1099-Misc? Thank you Agent/Realtor.Hirise Agenthttps://www.blogger.com/profile/12622694672084535142noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-3508143586243572592017-01-29T12:58:02.884-05:002017-01-29T12:58:02.884-05:00This comment has been removed by the author.Hirise Agenthttps://www.blogger.com/profile/12622694672084535142noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-87916270867833397362016-12-14T18:48:22.184-05:002016-12-14T18:48:22.184-05:00Following on from the query above. Both my wife an...Following on from the query above. Both my wife and I work and pay taxes via our employers. We always overpay our taxes and receive a sizable refund. This overpayment will dwarf any of my wife’s real estate tax liability and we should still receive a sizeable refund when we submit our tax returns next year. So if this is the case and all our income (employment plus real estate income) will be documented in a joint tax filing, do we have to pay “estimated taxes”. Putting it another way, will my tax overpayment count as the quarterly “estimated tax” payment for my wife’s real estate income?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-92071613687096220502016-12-14T16:54:38.237-05:002016-12-14T16:54:38.237-05:00great Blog
My wife gained her realtor license thi...great Blog<br /><br />My wife gained her realtor license this year and started working as a realtor whilst still working part-time.<br /><br />I usually use tax software to do our taxes.<br /><br />I have just read that you have to pay estimated taxes 4 times a year (4/15, 6/15, 9/15 and 1/15). She has only recently sold two houses however she is still running at a loss this year when you subtract all the realtor fees from her commission. <br /><br />I guess that we need to pay taxes on these sales on 1/15?<br /><br />How do we do this? - is there a form that we fill in and send into the IRS with a check?<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-13693326168524512442016-12-04T13:14:55.618-05:002016-12-04T13:14:55.618-05:00Sorry for typos, on vacation with just phone, but ...Sorry for typos, on vacation with just phone, but I think you can interpret. Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-1035517905138769302016-12-04T13:14:02.938-05:002016-12-04T13:14:02.938-05:003 things, other than making sure you track am mile...3 things, other than making sure you track am mileage and deductions...<br />1. Remind yourself every day that this is a great problem to have!<br />2. Start a SEP retirement plan and pour money into it. Talk to anot investment advisor. <br />3. Look at changing your business entity to S Corp or partnership. Not my area of expertise but you can save on self employment taxes this way. Talk to a CPA...it has upfront costs but should be well worth it.<br /><br />Other than that, charity and other itemized deductions.<br /><br />Buy my book ;)Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-5418898560205827642016-12-03T00:53:25.264-05:002016-12-03T00:53:25.264-05:00I made about $500k this year as a realtor and will...I made about $500k this year as a realtor and will hopefully double that next year. Problem<br />Is that my taxes are astronomical... is there a way I can invest money that will lower my income and allow me to pay less taxes and at a lower tax bracket? I can max out my TFSA but that's all I know so far.<br /><br />Thank YouAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-80805356310340822492016-10-11T09:58:30.463-04:002016-10-11T09:58:30.463-04:00That's the way to do it.That's the way to do it.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-77007274008533787372016-10-11T03:06:00.947-04:002016-10-11T03:06:00.947-04:00STG Subsequent to leaving the above post, I found...STG Subsequent to leaving the above post, I found this private letter ruling on the IRS site: https://www.irs.gov/pub/irs-wd/0721013.pdf<br />I shared it with my broker. He will not issue the 1099.Unknownhttps://www.blogger.com/profile/03128529273981351501noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-16053808132164248682016-10-10T17:13:28.125-04:002016-10-10T17:13:28.125-04:00Great question!
Most agents negotiate a reduction ...Great question!<br />Most agents negotiate a reduction in closing costs or price rather than receiving a commission in order to avoid your situation. Unfortunately, if you didn't do this, and get a 1099, it's income. If you are an active agent, it just goes in with the rest. If you are inactive, and this is your only income from real estate, you might be able to avoid self employment tax by calling it Hobby Income, but you still owe income tax on it.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-771395362010050632016-10-07T11:30:40.837-04:002016-10-07T11:30:40.837-04:00STG Great blog thanks. I am a licensed agent. I re...STG Great blog thanks. I am a licensed agent. I recently bought a personal residence. My broker intends to issue me a 1099 for my portion of the commission. Is this really income, or is it a reduction of the purchase price?Unknownhttps://www.blogger.com/profile/03128529273981351501noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-10966000471692287752016-01-08T22:54:20.227-05:002016-01-08T22:54:20.227-05:00The list of deductible items is pretty extensive. ...The list of deductible items is pretty extensive. As I said, if it is required, will make you more money, or makes the business run smoother, it is probably deductible. That said, successful real estate agents pay a lot in taxes. That's the price of success. Don't lie or cheat, but be aggressive.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-74481401935309547882016-01-08T16:43:09.619-05:002016-01-08T16:43:09.619-05:00I had a great year in 2015 but a terrible year in ...I had a great year in 2015 but a terrible year in 2014 as it was my first year in the business. So now I'm assuming I have a huge tax payment to be due since I made no estimated payments during the year (i was so broke from the previous year). I know some small business people deduction practically everything they spend in their life as a business expense. Is this a no no?Anonymoushttps://www.blogger.com/profile/01344385630377897886noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-17731700866925621372015-12-29T19:50:45.397-05:002015-12-29T19:50:45.397-05:00This was a great help for me. Thank yo very much f...This was a great help for me. Thank yo very much for sharing! Merry Christmas!Pj Aguonhttps://www.facebook.com/PjAguonRealtor/noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-14062307753780180942015-12-25T13:22:30.825-05:002015-12-25T13:22:30.825-05:00Generally the company you work for will issue you ...Generally the company you work for will issue you a 1099misc that only includes the 6000. In that case you only deduct the other expenses you incur in the course of your work. If they do issue a 1099 with the full 10000 you would deduct the 4000. You only pay taxes on what you actually receive minus expenses.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-26959173038699650762015-12-25T11:18:26.766-05:002015-12-25T11:18:26.766-05:00lets say there is an overall 10,000 dollar commiss...lets say there is an overall 10,000 dollar commission on the sale of a property and i as a salesperson get 6,000 of it. Are you saying that i could deduct the remaining 4,000 from my schedule C as a fee? thanksny agenthttps://www.blogger.com/profile/15344682540357852455noreply@blogger.com