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How to File Taxes as a Realtor: Step-by-Step Instructions

As a real estate agent in your local area, your work is full of responsibilities that require your attention. This includes filing your income taxes annually, with accuracy and within the given time. As a real estate agent, the tax filing process can be complicated, as the IRS usually treats you as a self-employed worker for federal tax purposes. However, you can learn how to file your taxes following these step-by-step instructions to make filing as a self-employed individual easier.

Step 1: Gather all necessary tax documents

Before you start filing your taxes, it's important to gather all the necessary documents. This includes your W-2 forms, 1099 forms, receipts for business expenses, and any other relevant tax forms.

Step 2: Determine your filing status

Your filing status depends on your marital status and family situation. As a realtor, you are most likely classified as a sole proprietor, which means you'll file your taxes using a Schedule C.

Step 3: Calculate your business income and expenses

As a realtor, you are considered self-employed and must report all of your business income and expenses on your tax return. Use your receipts and financial records to calculate your total income and expenses for the year. Here is a list of tax deductions for realtors for 2023.  

Step 4: Claim deductions and credits

Once you have calculated your total income and expenses, you can claim any deductions and credits that you are eligible for. This includes deductions for home office expenses, self-employment taxes, health insurance premiums, business-related travel expenses, and retirement contributions.

Step 5: File your tax return

Once you have completed all the necessary forms and calculated your taxes, you can file your tax return. You can do this either by paper or electronically through a tax preparation software or through a CPA. 

Step 6: Pay any taxes owed

If you owe any taxes after filing your return, you must pay them by the tax deadline. Failure to do so can result in penalties and interest charges.

Step 7: Keep accurate records for next year

To make tax time easier next year, keep accurate records of all your income and expenses throughout the year. This will make it easier to calculate your taxes and claim all the deductions and credits you are eligible for. Software like Symba makes this step easy.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.