Real Estate Agent Income
Any successful real estate agent knows that you must have a business and marketing plan. But, you also need a tax plan. Taxes will probably be one of your biggest expenses. A tax plan can help you minimize your taxes by maximizing your deductions. Increasing real estate agent income is more than increasing sales. Its about keeping more dollars in your pocket. Thinking about taxes around April 15th will not leave you many options for maximizing your income.
Are you poised to maximize your gains?
According to a survey conducted by InmanNext (an real estate agent focused website) top earning real estate agents (those that make $100,000 or more per year) tend to work more hours, close more transactions, spend more on marketing and technology, have higher commission slits, and update their websites and social media accounts more often than agents earning between $30,000 and $50,000. If you are one of these agents or in the process of building your business to this level you probably always wondered at tax time if you are leaving money on the table. If you don’t have a tax advisor who works with you year round to evaluate your business goals you may be missing out on valuable tax deductions. You’ve worked hard to build your reputation in your neighborhood. You owe it to yourself to have a plan that helps you achieve your financial goals.
The numbers don’t lie
If you are a high income earner you are probably spending about $5,000 or more per year on out of pocket marketing expenses. According to InmanNext the highest income agents (those making $200,000 or more per year) 42.4% spend more than $20,000 per year on marketing. Did you also know that a tax plan that includes restricting your business could save you more than $15,000 at tax time? Yes, it is possible to go beyond just standard deductions to crafting a plan that helps you reinvest the funds into your business or take that vacation to Europe. This should make you at least think twice about partnering with a tax attorney that understands your needs.
Estimating your tax payments
As a self-employed person you need to make your estimated tax payments. You don’t want to be surprised by an underpayment penalty at the end of the year. You need to pay at least as much as your prior year’s total tax liability in withholding or estimated taxes to avoid a penalty. Have your tax advisor work with you to estimate your actual amounts and keep you on top of your payments.