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Tax Deduction Consulting: Realtors Helena MT

Most Real Estate transactions have serious tax implications. They involve everything from capital gains to the interest paid of real estate loans. It is an important part of a Realtors job to understand the tax codes and how they will impact the transactions of their clients. In addition to this, many realtors are involved in the buying and selling as well as the management of rental properties for their own personal profit.

John Shellenberger
P.O Box 4758
Bozeman, MT
Company
Company: Estate Conservation Associates
Education
Franklin & Marshall College A.B.
Stanford University M.A.
Years Experience
Years Experience: 34
Service
Supplemental Medicare Insurance,College Planning,401k Rollover From Employer,Income for Life/ Preserve Principal,Medicare Planning,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Fee-Only Comprehensive Financial Planning,Long-term Care Insurance,1031 Exchanges,Wealth Engineering,Stock Market Alternative,Wealth Management,Life Insurance,Inves

Data Provided by:
H&R Block Inside Russell Square Shopping Center
(406) 251-6020
1132 SW Higgins Ave Ste 210
Missoula, MT

Data Provided by:
Murray Jim Acct
(406) 442-5520
111 N Last Chance Gulch
Helena, MT
 
Jacques Paula CPA
(406) 442-1040
828 Great Northern Blvd
Helena, MT
 
Cox Don CPA
(406) 442-1040
828 Great Northern Blvd
Helena, MT
 
H&R Block
(406) 727-3577
7353 Goddard Dr Bldg 1150
Malmstrom Afb, MT

Data Provided by:
Campbell and Associates,CPAs
(406) 728-9288
2505 S Russell
Missoula, MT
 
Nelson Patty CPA
(406) 442-1040
828 Great Northern Blvd
Helena, MT
 
Kammerzell Brad CPA
(406) 442-5520
111 N Last Chance Gulch
Helena, MT
 
Carlson Gary B CPA
(406) 442-1040
828 Great Northern Blvd
Helena, MT
 
Data Provided by:

Tax Deduction Consulting: Realtors

Tax Deductions for Realtors

A Realtor is in a line of work that requires a lot of knowledge about the tax codes. An understanding of the tax deductions available for realtors should be easy for them.

Most Real Estate transactions have serious tax implications. They involve everything from capital gains to the interest paid of real estate loans. It is an important part of a Realtors job to understand the tax codes and how they will impact the transactions of their clients. In addition to this, many realtors are involved in the buying and selling as well as the management of rental properties for their own personal profit.

This knowledge of the tax codes should serve the Realtor well in understanding the tax deductions available when he files his own tax return. Many Realtors are independent contractors. They are, in effect, owners of their own small business concern. As such, they are entitled to deduct almost all of their job related expenses as deductions against their income. Realtor professionals are eligible to deduct 100% of their Rental property loss. To qualify as a professional realtor at least one half of all the services rendered by the taxpayer must be in the area of Real Estate. They also must spend a minimum of 750 hours a year working at the Real Estate Business and the taxpayer must have materially participated in the providing of the service.

When it comes to personal deductions, the IRS uses the terms ordinary and necessary. Ordinary and necessary refer to just about any expense that is common and appropriate. Such items as entertainment expense, automobile expense, and home office use are ordinary and necessary expenses for a Realtor. Entertainment expense has some special requirements before it can be utilized as a deduction. In the first place, only 50% of the cost of meals, etc, can be taken for any single event.

The Realtor generally works out of his automobile. As long as a certain portion of the automobile expense is called personal use and not part of the deduction, the remainder is a legitimate business deduction. If the automobile is driven home, that is considered commuting and is no different than any other worker who drives to and from work. However, all miles driven for work purposes are deductible. The deduction can be calculated either by keeping a record of the miles actually driven and using the per mile allowance determined by the IRS, or actually records of the expense can be kept.

When the Realtor work...

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