If you’re like most REALTORS®, summer months are the hottest not just in temperature, but in sales. This busy time makes it extra important to be vigilant of your expenses and sales so your business stays stable going into the holidays, and so you’re prepared come tax season.
According to definitions by the Internal Revenue Service, you’re most likely operating your real estate business as a sole proprietorship. If that’s the case for you, QuickBooks Self-Employed gives you insight into how much you’ll owe in taxes, and what your actual profits and losses are so you can more easily manage your taxes. Here’s what to be aware of so that you can have a successful summer season and close out the year on a high note.
Use the Past to Guide You
As a sole proprietorship, you owe quarterly taxes in estimated payments based on your income. When you fill out a Tax Profile on QuickBooks Self-Employed, you’ll have an accurate picture of how much you should be paying in estimated payments based on your earnings last year. If this is your first year in your position, the Tax Profile will use your business income, spending, allowable expenses and other information you’ve input to give you a clear amount to cover you for your payments this year.
Keep Track of All Your Deductions
REALTORS® have many business items that can be deducted, which help in the more than $4,300 in potential savings every year when using QuickBooks Self-Employed. Common deductions cited by REALTOR® magazine include:
- Mileage:In order to deduct the mileage you drive for all those listing appointments, showings and more, the IRS requires that the date, time and purpose of each trip be recorded. The Mileage Tracker in QuickBooks Self-Employed tracks mileage and enables easy categorization for users.
- Home office, marketing and office supplies:Anything you purchase for a home office, including supplies, can be deducted. Marketing materials like business cards and flyers can also be deducted. Use the Receipt Snap feature from QuickBooks Self-Employed to take photos of receipts from your phone and link them to transactions.
- Meals, entertainment and client gifts:Strengthening client relationships through face time often requires lunch or dinner meetings. When these meetings are for business purposes, you can deduct 50 percent from the expense. If you’re giving gifts to clients for events such as a closing sale, you can also deduct up to $25 per gift.
Other items that may be considered for deduction include buying or leasing a new car, conventions and conferences, desk fees and legal or professional services. Use QuickBooks Self-Employed to keep everything organized for you.
Let Automation Streamline Tracking
There are so many intricate details to monitor when you’re a real estate business owner. Using an app like QuickBooks Self-Employed that synthesizes your data to give you insights saves you time and hassle. Tax aspects that are ideal for automation include:
- Tax reports:Download reports based on what you input that you can send to your CPA or easily integrate into TurboTax Self-Employed for even simpler filing.
- Transaction categories:Since different types of transactions allow for different deduction amounts and percentages, using a feature like Auto Expense by QuickBooks Self-Employed allows you to sort through and categorize transactions. This allows you to gain better insight into your business so you can constantly improve.
- Income versus expenses: Always stay in the black with clear visibility of income and expenses. The Money Insights feature from QuickBooks Self-Employed organizes spending and income in an elegant Profit and Loss dashboard card so you stay on track.
Navigating this busy season with self-employed tax help makes it easier to improve your finances throughout the rest of the year. Make estimated taxes a breeze and filing for tax season simple with an easy-to-use app like QuickBooks Self-Employed that keeps you organized and confident in your real estate business.
QuickBooks Self-Employed is a proud partner of the National Association of REALTORS® REALTOR Benefits® Program. REALTORS® receive a free 30-day trial and 50% off their first year subscription of QuickBooks Self Employed.
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