For realtors, brokers, and top producers

You closed $480K GCI. Your CPA filed a Schedule C. You overpaid.

You show houses. You don't track mileage logs at midnight. We elect the S-Corp, deduct the right portion of the vehicle, design a Solo 401(k), and stop letting missed broker 1099s become an audit flag.

What real estate agents get wrong (and what we fix)

Realtors are not Specified Service Trades under §199A, so the full 20% QBI deduction is available regardless of income. But most agents stay on a Schedule C past $200K of GCI, pay 15.3% self-employment tax on every dollar, and never see the S-Corp savings their top-producing peers use.

Vehicle deductions, done right

You drive 25,000+ business miles a year showing properties, attending closings, and inspections. We compare standard mileage (67¢ per mile for 2024) against actual expense plus depreciation including §179 on a heavy SUV over 6,000 lbs GVWR. We pick the method that wins and lock in the documentation.

IRC §162(a); §179(b)(5) SUV cap; Rev. Proc. 2019-46

S-Corp election at $200K+ GCI

Above $200K of net commission income, the S-Corp election typically saves $10K to $25K per year in self-employment tax. We benchmark reasonable comp against NAR producer surveys and BLS data, file the late S election if you missed March 15, and run payroll through Gusto so the wage is bulletproof.

IRC §1362; §1402(a); Rev. Proc. 2013-30 (late election)

§199A QBI for realtors

Real estate brokerage is not an SSTB. You get the full 20% QBI deduction even above the $383,900 MFJ threshold for 2024, as long as you have enough W-2 wages or qualified property. The S-Corp structure feeds the W-2 wage limit and unlocks the deduction at higher incomes.

IRC §199A(b)(2)(B); §199A(d); Treas. Reg. §1.199A-5

Solo 401(k) up to $69K

A solo agent under 50 can shelter up to $69,000 in 2024 between employee deferrals and employer profit sharing on the S-Corp wage. Over 50, add the $7,500 catch-up. Roth solo 401(k) is available. We design the plan, file the 5500-EZ once assets cross $250K.

IRC §401(a), §401(k), §415(c); Notice 2023-75

Marketing, MLS, staging, signage

MLS dues, lockbox fees, Zillow Premier and Realtor.com leads, professional photography, drone footage, staging consultations, yard signs, closing gifts (subject to $25 per recipient limit), CRM and transaction management software all deduct on Schedule C or as S-Corp business expenses. We make sure none of it gets capitalized in error.

IRC §162(a); §274(b)(1) gift limit; §263 capitalization rules

Home office + missed broker 1099s

Most agents have a real home office that meets §280A(c) regular-and-exclusive use. Skipping it costs $2K to $4K a year. We also reconcile every 1099-MISC your broker filed against your gross commission so the IRS matching program doesn't flag an underreporting notice 18 months later.

IRC §280A(c)(1); §6041; §6721 penalties

Real client example

Top-producer realtor, age 41, $480K GCI, was on a Schedule C with a CPA who never proposed the S-Corp. We elected late S-Corp, set reasonable comp at $145K, built a Solo 401(k), and ran the heavy SUV under §179.

$32,000 saved

Federal SE tax + income tax savings on the S-Corp distribution split, $69K Solo 401(k) contribution at marginal rate, and §179 vehicle deduction. State savings on top. Tax-deferred retirement growth compounding for 25 years.

Free S-Corp analysis → Talk to our office
Call 689-331-5723 · info@zerofusstaxes.com · Real humans pick up.
Disclaimer. This page is general tax information, not advice for your specific situation. Code section references are accurate as of the 2024 tax year and may change. S-Corp election timing, reasonable compensation benchmarks, §179 SUV rules, and Solo 401(k) plan design all require facts-and-circumstances analysis. Savings examples are illustrative and based on actual client outcomes but your results will depend on entity structure, income level, state of residence, and documentation quality. Zero Fuss Taxes is the operating brand. We are not your tax advisor until we sign an engagement letter.