Business Tax Recovery Logo


Tax Deduction Consulting: Realtors Westbrook ME

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.

Michael John DellOlio (RFC®), JD, MBA
(207) 294-0401
16 Middle Street
Saco, ME
Company
Michael J. DellOlio & Associates, L.L.C.
Qualifications
Education: B.S.,MBA,J.D.,NASD Series 6,7,24,63,65; Maine Insurance License
Years of Experience: 24
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, BuySell, Compensation Plans

Data Provided by:
Liberty Tax Service
(207) 828-4829
694 Forest Ave
Portland, ME
 
Scott Associates
(207) 772-0441
12 Revere St
Portland, ME
 
David Thomas & Assoc
(207) 871-0123
477 Congress St Ste 1005
Portland, ME
 
H&R Block
(207) 541-1981
629 FOREST AVE
PORTLAND, ME

Data Provided by:
Johnson Virginia M
(207) 772-2322
686 Brighton Ave
Portland, ME
 
H & R Block
(207) 773-0221
252 Saint John St
Portland, ME
 
H & R Block
(207) 775-1972
400 Maine Mall Rd
Portland, ME
 
Austin Associates PA CPA
(207) 892-6642
183 Us Route 1
Portland, ME
 
Brown Barry J
(207) 879-7000
22 Free St Ste 301
Portland, ME
 
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