Whether you’re an agent, broker, or team lead, the right tax strategy keeps more commission in your pocket and reduces audit risk. We help REALTORS® in Zephyrhills, Wesley Chapel, Dade City, Tampa Bay, and across Florida prepare clean returns and plan year-round.
1) Separate business & personal finances
Open a dedicated business checking account and card. Commingling is the #1 recordkeeping mistake that triggers adjustments at tax time.
2) Track mileage the smart way
Use a mileage app to log listing appointments, showings, inspections, closings, and brokerage trips. Keep beginning/ending odometer readings for the year.
3) Capture home office correctly
If you use a dedicated space regularly and exclusively for business, you may deduct the simplified rate or actual expenses (rent, mortgage interest, utilities, insurance) based on square footage.
4) Deduct marketing & lead generation
Signs, photography, staging, videography, flyers, website costs, CRM, ads (Google, Facebook, Zillow), lockboxes, and open house supplies are ordinary & necessary expenses—save receipts and invoices.
5) Don’t miss education & dues
License renewal, CE credits, professional dues (NAR, FAR, local board), MLS fees, and broker desk fees are typically deductible.
6) Choose vehicle method wisely
Compare the standard mileage rate vs. actual expenses (fuel, lease, insurance, maintenance, depreciation). Pick the method that yields the larger deduction and stay consistent with IRS rules.
7) Plan quarterly estimated taxes
Commission is often paid on 1099-NEC with no withholding. Use a quarterly set-aside plan for federal income tax, self-employment tax, and Florida filings where applicable.
8) Leverage the QBI deduction (when eligible)
Many solo agents and small teams may qualify for a Qualified Business Income (QBI) deduction—optimize net profit, retirement contributions, and wages to maximize it.
9) Retirement & health strategies
Consider SEP-IRA or Solo 401(k) for high-earnings years. Evaluate HSAs if you have a high-deductible health plan. These reduce taxable income and build long-term wealth.
10) Year-round bookkeeping
Real-time categorization in QuickBooks, monthly reconciliations, and digital receipt capture mean fewer surprises in March and better cash flow decisions in June.
Florida Real Estate Agent Tax Checklist
- 1099-NEC from brokerages and platforms
- Mileage logs & vehicle expense reports
- Broker fees, MLS, board dues, CE receipts
- Marketing & listing costs (photos, staging, signage)
- Home office documentation (square footage, bills)
- Quarterly estimates proof of payment
- Closing statements (HUD-1/CD) for listings purchased/sold personally
FAQs
Should I be an LLC or S-Corp?
The decision largely depends on several important factors, including net profit, liability concerns, and payroll considerations. Many agents initially begin their business journey as sole proprietors or set up as LLCs because these structures are simpler and more straightforward. However, once their profits reach a level that justifies the additional complexity of managing payroll, and when the potential tax savings become significant, they often choose to elect S-Corp status. This transition can offer meaningful financial advantages and help optimize their overall tax situation.
Can I deduct client meals & gifts?
Client meals that have a clearly defined business purpose are generally 50% deductible according to tax regulations. It is important to document the reason for the meal as well as the participants to ensure compliance. When it comes to giving gifts, these are usually limited to a small dollar amount per recipient each year. To stay within these limits, it is essential to carefully track each recipient and the total amount spent on gifts throughout the year. This helps maintain proper records for tax and accounting purposes.
What if my broker issues multiple 1099s?
That’s quite common and happens frequently. Make sure to carefully reconcile all of your 1099-NEC forms with your accounting books and your actual bank deposits to ensure everything matches up accurately. Additionally, it is very important to keep all commission statements and settlement sheets as supporting documentation for your records and future reference.
Need a real-estate tax expert?
Henriquez Accounting & Tax Services supports REALTORS® and brokers in Zephyrhills, Wesley Chapel, Pasco County, and Tampa Bay with tax preparation, bookkeeping, and outsourced CFO.
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