Real estate professionals face a number of unique tax situations and are often negligent in keeping tax records up to date.
This is often a consequence of being a sole proprietor faced with working a real estate business and taking care of a real estate business.
Tax problems arise when the real estate agent forgets to make quarterly estimated tax payments or has not budgeted funds properly and does not have the funds to pay the estimated taxes.
Even with the best of intentions, this practice may continue over time.Eventually, the IRS will catch up and begin to pursue you for the taxes owed.
They may even assess liens on your property and rob you of your peace of mind.
A growing trend in the real estate industry is “teaming up.”
Compliance with Real Estate License Law and Commission rules aside and regardless of how your team is structured, do you know if you are in compliance with tax laws?
If you created an entity for tax purposes, your entity must have a firm broker license before commissions can be paid to the entity.
Otherwise, the commissions will continue to be paid to you individually.
- This could create unintended tax consequences for the individual.
Another common practice among real estate brokers is working from a home office.
The term “home office” is often misunderstood and claimed by those who don’t qualify for it, or it is not claimed to the taxpayer’s best advantage.
- Understanding the requirements, options, limitations, advantages, and disadvantages will help you determine if you qualify for the deduction and whether it is right for you.
At Bayshore CPA’s, P.A. we understand the workings of the real estate profession as well as the associated tax laws, some specific to the real estate industry that could help you save money.
- Our partners have been active licensed North Carolina real estate brokers for more than 20 years and have helped a number of real estate clients resolve tax problems as well as organize and manage their businesses.
Your peace of mind is our motivation.
We offer services to real estate professionals for:
- Filing back taxes
- Compiling required financial records
- Releasing tax liens and levies
- Ending wage garnishment
- Preparing Offers in Compromise
- Negotiating Installment Agreements
- Tax penalty abatement
- Resolving payroll tax problems for agencies or entities
- IRS tax audit representation
- Home office qualifications and methods
- Determining other qualified deductions
Trust your business to the people at Bayshore CPA’s, P.A. who know the real estate industry and the tax laws that govern it.
Call our office now located in Mooresville, NC at 704-660-9317 to schedule your consultation.