MILLBURY, MA…
The recent upsurge in the real estate market has left plenty of realtors with smiles on their faces and more dollars in their pocket. For real estate agents who don’t plan their finances appropriately, the hot market can burn through large commissions in the form of a larger tax bill than previous years.
“It’s been about eight or nine years since the salad days of the early 2000s and I’m sure there are many real estate agents who are either new to the business now or forgot how quickly the golden goose stopped laying eggs,” Paul Dion, a Millbury, MA CPA and author of The Ten Most Expensive Tax Mistakes…that cost Real Estate Agents Thousands. “By taking advantage of some basic tax strategies available to self-employed individuals, real estate agents can ride the current hot market and protect themselves from possible slowdowns in the market down the road.”
Some of the strategies Dion employs for real estate agent clients include:
- Selecting the correct business entity for your business – should you be a sole proprietor or does an LLC offer more benefits and protection?
- Choosing the appropriate retirement plan – how much of your recent commissions should go into your plan and what offers the best return?
- Employing family members – hiring your children to help out with the business can shift some of your income on to them, which would be taxed at a lower rate
- Deducting your health insurance as an adjustment to your income on your tax return
- Properly deducting your home office
- Maximizing auto expenses, as well as meals and entertainment expenses
Dion, with three decades of experience providing tax and business advice, notes, “There’s a distinct difference between sales and running a business. Many real estate agents are great sales people and can move properties, but might not be as skilled as small business owners. That can come back to haunt you in good times and bad if you are not working with capable tax and financial professionals.”
ABOUT PAUL DION, CPA
Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit. Clients save money and sleep well as night.
Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction.
For a free book, more information or a complimentary consultation, please visit www.PaulDionCPA.com or contact Paul Dion CPA, via Info@PaulDionCPA.com or (508) 853-3292. Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA 01527.
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