The majority of Realtors, Real Estate Agents, and Real Estate Brokers in New York are being paid in their own name and filing a Schedule C attached to their personal tax returns in order to report their real estate income and expenses. However, just about every Realtor, Real Estate Agent, and Real Estate Broker we encounter would benefit by setting up an S Corp or an LLC to operate their real estate business at a lower tax rate and with a lower audit risk. The agents and brokers we work with save an average of $5,354 each year in tax while enjoying an audit risk that is approximately nine times lower than it was before they hired us.
Some other nuances in the real estate profession that require special accounting and tax treatment include closing gifts, properly accounting for open house expeneses, staging costs, virtual tourrs, and fees charged by the brokerage you work for. Here at Michels & Hanley, we are intimately familiar with these elements and are equipped to help you reduce your annual tax bills.
Contact us today to find out how we can help your real estate business.
Michael Hanley, CPA
Brian Michels, CPA