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Real Estate Agent Taxes
You’ve come a long way to establish your career, and the last thing you want to do is run afoul of the IRS. There are some important things you need to know about taxes so you turn in the right forms – and you claim the right deductions. Read on to learn more about taxes as a real estate agent.
As a real estate agent, you either work in an agency or you operate your own business. If you choose to do the latter, you will be recognized as a sole proprietorship. As a sole proprietor, you are self-employed and are not classified as a corporation like a sub-S. Your classification as far as the IRS is concerned is a statutory nonemployee so long as your income for services rendered is derived from sales of homes or appraisals of homes that will be bought or sold and not based on hours you work. You will also need to put this into a contract that states you are not an employee in order to protect yourself.
You are eligible to take several tax deductions so long as the items in question are truly only used for your business. Take for instance a computer you purchased for your agency. If you use it only for work, you can take the full amount off of your taxes next year. ...contd..