When it comes to running a real estate agency, one of the most powerful currencies that you have is trust. Without trust, how can you expect anyone to trust or believe in your business?

Trust, though, is a precious commodity – and one that many businesses in this sector lack. One of the primary reasons for such a lack of trust, though, stems from taxation issues. The minute a real estate agency finds itself combatting reputational damage through an IRS audit, which can be hard to hide, you’ll immediately find yourself up against it.

  • For example, one of the most common hides that someone will attempt is to try and hide all of their income.
  • This is a common mistake, and if your income does not match any and all 1099s and W2s that you bring in, then you are going to be in a bit of a pickle.
  • Not reporting all of your income is a common reason for an audit, and is something you should look to avoid. Make sure ALL of your income is reported each and every time.
  • Another major mistake that people try to get away with is earning too much. That might sound a bit harsh, but anyone over the $200,000 mark instantly has a fourfold higher chance of being taken to task via an audit.
  • When you want to make sure that your business stays above board, you should always look to make every penny earned easily disclosed.

Of course, as a real estate agent you would do very well to get in touch with a CPA. Together, you can work with a tax preparer and create a platform that will allow you to handle your taxation problems without any of the usual stress and strain that exists!

Crucially, it can also help you to avoid that audit that you fear so much. With that in mind, you can make it much easier to avoid the red flags that are bound to land your business in some trouble. Again, you want to avoid being seen as someone who is taking underhand measures to try and beat the government.

Taxation matters, and your businesses’ reputation will be predicated on how you come out of tax disputes. Therefore, the more above board that you can be, the more likely it is that you will avoid censure or any reputational damage.