All Forum Posts by: Patrick J.

@Kyle Scholnick

Do it. Nothing wrong with it. You're transfering business income to rental income and it's legitimate since you own the building and the business or you could just form an S-Corp.

@Nathan G.

Lol $500/month?? Its $25/month and $500 per year for E&O. There are no other fees other than $200-$400 transaction fees. Homesmart and Realty One Group have a similar structure along with MyHomeGroup. Never heard of a monthly fee of $500.

No amount of support will make an agent succeed. 70/30 brokerages have the same failure rates as 90/10 or 95/5 brokerages which is basically ours after deducting monthly fees and transaction costs. Success isn't dependent on the brokergae unless the brokerage is feeding you leads they don't want. There are small mom and pop brokerages that get a lot of buyer leads that they just pass on to other agents and only deal with listings.

@Nathan G.

Not true, Fees are based on transactions so the more transactions at higher price points, the more fees the brokerage collects. It is $200 every $200,000 for my brokerage. If the sale is $200,001, then it bumps up to $400 until $400,000.

Are haircuts tax deductible for certain businesses? Also, how would Trump carry back real estate losses after the 08 crash? Wouldn't the real estate carry back losses have to offset other capital gains but not ordinary income he made

@Ruben Morgan

She should've chosen a 100% fee brokerage from the start. That's what I did and it saves agents thousands and thousands of dollars every year. Imagine making 200k in gross commission and having a broker take $60,000 and even sometimes up to $100,000. That's highway robbery. Anything more than 10% is robbery.

Find a local Homesmart or Realty One Group. 100% commission and you just pay $200 transaction fee per $200,000 in sale.

@Julia Bobe

It's going to show up on the 1099 your broker gives you at year end which gets sent to the IRS too so you're kind of forced into reporting it either way. Also, buying is different since you were paid by the seller. It's almost free money but when you sell, don't pay yourself anything.

@Julia Bobe

You're getting the money either way. Giving yourself commission adds unnecessary expenses into the equation. Pay yourself $0 if you can. I believe some brokers even allow you to sell 1-2 agent owned homes without paying anything.

@Julia Bobe

Why would you even pay yourself a commission on your own home?? All you're doing is giving your broker a higher percentage of your income and it'll be added onto your 1099 at the end of the year. I would pay myself the minimum allowable by my broker. Our broker lets us pay out anything we want so I would pay myself $400 to cover the broker transaction fee and give the other side 2-2.5% for my own home since the market is hot. I believe it would be foolish to give out more than 2.5% on your own home or a family members home in this market. Keep the money in house.

@Michael Plaks

You're right. I was thinking I'd have to pay $40/month for payroll but I could just file it year end on my own as you're saying.

@Basit Siddiqi

So do you think it doesn't need to be filed for a child employee making under the SD??

The only reason for filing would be if one were to get audited, the IRS would want proof that your child is an actual employee of the business. No FICA tax. No income tax under 12k.