How much should a real estate agent save for taxes?
Real estate agents are usually independent contractors, which means that their payment is not automatically withheld by the broker they are collaborating with. These professionals are responsible for paying the current employment tax rate along with their income and expense taxes. Unfortunately, when you are self-employed, you must pay Social Security and Medicare taxes in addition to income taxes. It's safe to assume that you must set aside about 30% of your income for taxes. The good news is that if the agent keeps a good record of the expenses obtained for his business, it will help him reduce the percentage, it will benefit his pocket. Some of the deductions that you may be able to reduce:
Commission Paid Desk Rental Home Office Education and Training Ads and Marketing Office equipment and supplies Sure Business Tools and Program Business / non-personal meals
Consult with a qualified tax assessor Consult a Tax Professional before making any decisions that may affect your Business / Personal Tax return. Be sure to select someone who can help you all year long, not just at tax time. Note: These tips are not intended to be tax tips, they just give you some tax saving ideas. Every business is unique, and tax laws change frequently.