Business Tax Recovery Logo


Tax Deduction Consulting: Realtors Mitchell SD

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.

Mr. Todd M. Klein (RFC®), CFP
(605) 348-2433
1241 E St. Joseph St
Rapid City, SD
Company
Fintegra, LLC
Qualifications
Years of Experience: 19
Membership
IARFC
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Education Plan

Data Provided by:
Liberty Tax Service
(866) 871-1040
5216 W 26th St
Sioux Falls, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1520 W 12th St
Sioux Falls, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1943 Dakota Ave S
Huron, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
532 E Anamosa St
Rapid City, SD

Data Provided by:
H&R Block Inside Sears At Rushmore Mall
(605) 399-2114
2200 N MAPLE AVESW Suite 8
RAPID CITY, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
633 E Sioux Ave # 6
Pierre, SD

Data Provided by:
H&R Block
(605) 362-2567
3400 EMPIRE MALL
SIOUX FALLS, SD

Data Provided by:
H&R Block
(605) 332-8081
4601 E ARROWHEAD PKWY STE 101
SIOUX FALLS, SD

Data Provided by:
Determan Ross CPA
(605) 996-1166
1130 S Burr St
Mitchell, SD
 
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...

Click here to read the rest of this article from BusinessTaxRecovery.com