APRIL NEWSLETTER
TAXES
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ANYONE?
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IN THIS ISSUE:
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MEMBERS FIRST!
“WITH CAREFUL RECORD KEEPING, AND PROFESSIONAL GUIDANCE, THE INCONVENIENCE OF TAX DEADLINES CAN BE MINIMAL.”
PRESIDENT’S MESSAGE 2 0 1 8 PRESIDENT
BECKY CHIRILLO
Typically REALTORS operate as Self Employed, Sole Proprietor, or Independent Contractors. This means that we are responsible for paying our taxes independently. With careful record keeping, and professional guidance the inconveniences of tax deadlines can be minimal. A Broker who pays out more than $600.00 to an agent will file a Form 1099 - MISC to the IRS. Independent contractors are required to pay their taxes in quarterly installments if the total amount of tax due for the year is more than $1,000.00. The exception to this rule would be an agent who made no profit the previous year and paid no taxes. Be sure to speak to a professional accountant to calculate your quarterly payments. Some of the most common deductions to take advantage of are: • • • • •
Home office expenses Desk fees Dues Education/ Training/ Coaching Real Estate License fees/ renewal fees
• Business travel • Auto maintenance/repairs, gas, mileage, insurance • Marketing - signs, business cards, website development • Gifts (up to $25) You can refer to IRS Publications 463 and 535. Real Estate business expenses must be: ordinary and necessary, directly related to your business, and a reasonable amount. (TurboTax) A couple of things that are not deductible are: Clothing, unless it's required or essential, or not suitable for general or personal wear. Also, fees associated with lobbying or political advocacy are not deductible. So, with insightful planning, and advice from the tax professionals, we all can learn how to keep more of the money we earn! - Be blessed.