Most real estate agents are going to work for themselves. This means that they are going to be in charge of their own businesses and can determine their own fees and pay off all their own expenses. A real estate agent is going to find that their business is very similar to what you will find when it comes to other self-employed individuals in that you will need to keep track of money coming in and out and that tax season can be a pain when you have to keep all this in order.
If you run your own real estate business and are feeling overwhelmed when it comes to tax time, make sure to contact Todd Koscinski to help you out. They have the professionals that you need in order to get those taxes done while saving as much money as possible in the process.
Tax Status for Real Estate Agents
Real estate agents are great individuals. They are working in a market that is not always the easiest to handle. Sometimes they can make a lot of sales when the economy is high and other times they may struggle to find homes that they can help sell to make a profit. But no matter how the economy is going, real estate agents are going to run their own businesses in most cases. While there are some who will work under a name brand, most of them get to choose the location they want to work, how many hours, and so on to get the results they want.
As a self-employed individual, most of these real estate agents are going to do their taxes in the same manner as other work from home individuals. You just need to remember to file as a sole proprietorship or a self-employed individual when it comes to working for the IRS. If you do work under a contract with another realtor, you will usually be considered a statutory non-employee unless your contract states that you will file as self-employed when it comes to tax time.
If you are unsure about how you should file yourself for tax season, make sure to talk to the professionals at Todd Koscinski. They will be able to ask some questions about your business and will look over your contracts to see which is the best way for you to file during tax time. Once you have learned about your tax filing status, their professionals can take the time to fill out your tax return and get you the best deal on your tax bill possible.
Deductible Expenses
Just like with other self-employed individuals, you will have more expenses that can be deducted during tax times. For example, if you work from a home office, you will be able to claim some of the expenses of your home, such as mortgage, on your tax return. If you maintain an office in another location from your home, there are some other deductions that you are going to be able to claim on your tax return. In addition, if you have to pay some money to stage a home before a showing or travel a lot to get to the homes you are selling, you could deduct some of these expenses as well.
There are a lot of items that are deductible when it comes to your business as a real estate agent. Understanding all the options that are available and how you can save money during tax season could seem like a monumental task. Make sure to contact the professionals at Todd Koscinski to help you figure out the deductions that you can qualify for in order to lower your tax bill and to get the most money back into your pocket to keep the business running smoothly.
Paying for Help
While it would be nice to do all the work on your own, there are some tasks that you may not be very good at doing. You may decide that it is time to hire out others to help you get this work done. For example, you may hire out someone who will photograph the homes you are selling. If you do hire someone out, remember that you will need to file a Form 1099-MISC if you pay one individual more than $600 for the year. Also, you will be able to claim these payments on your tax return to lower the amount of your tax bill.
Filing the Return
As a self-employed individual, you are going to be the one responsible for withholding the taxes each year and then sending them over to the IRS. You do not have a boss or other employer who will do this for you. If you think you will owe over $1000 for a particular year, you will be responsible for filing a tax return for estimated taxes and then you will need to send in the payments each quarter while also filing a tax return at the end of the year. The professionals at Todd Koscinski will be able to help you file all the right paperwork so you can concentrate on selling those houses rather than worrying about taxes all the time.
When you want the very best when it comes to getting your tax return done and you want your questions answered the right way the first time, make sure to contactTAX PROBLEM RESOLUTIONS INC. Contact us today to get started.
