@Hale
Agents work on commission, not salary. Most income is commission-based and shouldn’t be factored into salary.
Porter said:
@Hale
Agents work on commission, not salary. Most income is commission-based and shouldn’t be factored into salary.
It’s still personal service without employees.
Porter said:
@Hale
Agents work on commission, not salary. Most income is commission-based and shouldn’t be factored into salary.
It’s still personal service without employees.
This logic is what leads to massive tax headaches.
Porter said:
@Hale
Agents work on commission, not salary. Most income is commission-based and shouldn’t be factored into salary.
They still get paid for admin tasks. It’s not just about handling the admin for themselves.
Lyle said:
@Hale
Anyone have thoughts on the 250k suggestion? Is that the going rate?
I don’t think 250k is reasonable.
Lyle said:
@Hale
Anyone have thoughts on the 250k suggestion? Is that the going rate?
I don’t think 250k is reasonable.
You might end up losing if audited. All income comes from personal work, so setting a small salary could backfire. But it’s really best to discuss with a CPA.
Is your whole income from real estate commissions? If so, then most of it might need to be salary. Do you own the whole brokerage?
Do you have a tax pro advising you? Given your income, it’d be worth it to talk to an EA or CPA to get tailored advice for the year.
This one gets mixed opinions. For 500k net income, a salary around 100k might be okay. I had a client with 2M net who set their salary at 150k and never had issues.
Lex said:
This one gets mixed opinions. For 500k net income, a salary around 100k might be okay. I had a client with 2M net who set their salary at 150k and never had issues.
This is the most realistic answer so far.
Lyle said:
@Porter
I disagree. That’s pulling numbers without enough context.
The tax code has gray areas. CPAs should work to maximize client benefit within those limits. Hard to understand the push for blanket rules.
@Porter
I focus on compliance with the law. Just because you can get away with it doesn’t mean it’s solid advice.
Lyle said:
@Porter
I focus on compliance with the law. Just because you can get away with it doesn’t mean it’s solid advice.
Your advice seems overly strict. Not for everyone, I guess.
@Porter
I get both sides, but being too aggressive in gray areas can have downsides, especially for CPAs.
Lyle said:
@Porter
I disagree. That’s pulling numbers without enough context.
This is a forum discussion, not one-on-one advice. Just sharing a general perspective.