Tax preparation for realtors
Quick answer: Commission income swings, big deductible spend, and no withholding make agents one of the most under-served groups in tax prep. We smooth the spikes with planned quarterly estimates and capture marketing, mileage, and licensing costs the software interview skips.
Marketing and staging
Signs, photography, staging, ads, and client gifts (within limits) are deductible business costs.
Mileage between showings
Showings, listing appointments, and broker caravans add up to serious miles. A clean log is money.
Licensing, MLS, and dues
License renewals, MLS fees, board dues, and E&O insurance reduce taxable income.
Home office
A dedicated workspace can qualify even when your broker provides a desk, if you meet the exclusive-use rules.
Commission splits and referral fees
Fees paid to your broker or other agents come off the top. They are often misreported.
S corp timing
Past a consistent profit level, an S corporation election can cut self-employment tax. We model the break-even before you commit.
Educational overview, not tax advice. Every deduction here has rules and limits, and a real preparer reviews your actual situation before anything is filed.
Are client gifts deductible?
Yes, with a per-person dollar cap that is easy to trip over at closing season. Track who got what; we apply the limit correctly.
I got a 1099 from my broker. Is that everything?
No. It typically shows gross commissions before splits, desk fees, and transaction fees. Your real income is lower, and the difference is deductible.
Should I be an S corp?
Maybe. It saves self-employment tax above a profit threshold but adds payroll and filing costs. We run your numbers both ways and show you the break-even.