As a real estate agent, it's important to plan for taxes in order to avoid surprises and ensure that you're in compliance with all applicable laws. Here are a few steps you can take to plan for taxes as a realtor:
- Understand the tax laws and regulations that apply to you. As a real estate agent, you'll need to be familiar with the federal, state, and local tax laws that apply to your business. This includes laws related to income tax, sales tax, property tax, and any other taxes that may apply to your business.
- Keep accurate records of your income and expenses. In order to accurately report your income and expenses on your tax return, you'll need to keep detailed records of all your business transactions. This includes receipts, invoices, and other documentation that can help you track your income and expenses. Software apps like Symba can make this almost effortless for you.
- Set aside money for taxes throughout the year. Instead of waiting until the end of the year to pay your taxes, consider setting aside a portion of your income each month to cover your tax obligations. This can help you avoid a large tax bill at the end of the year and can make it easier to pay your taxes on time. Symba actually has a feature that estimates how much money you should save for taxes on each individual deal you're working. This will give you a more accurate idea of how much money you're actually making on a deal before it even closes.
- Consider working with a tax professional. If you're not sure how to handle the tax aspects of your business, consider working with a tax professional who can provide guidance and advice. A tax professional can help you understand your tax obligations and can assist you with preparing and filing your tax returns. If you're reading this a need a CPA consider the Symba tax tier. through this tier you get a CPA service designed specifically for Realtors. Visit https://www.getsymba.com/tax to learn more about this offering.
Overall, planning for taxes as a real estate agent requires staying informed about the relevant tax laws, keeping accurate records of your income and expenses, setting aside money for taxes, and possibly working with a tax professional. By taking these steps, you can help ensure that you're in compliance with the law and that you're prepared to meet your tax obligations throughout the year.