Top 5 Tax Mistakes Realtors Make
- Not Selecting the correct Business Entity – this mistake can cost you thousands at tax time. By selecting to incorporate you can control the amount of payroll taxes paid, speak to tax professional that can discuss the available options and which one will benefit you the most at tax time.
- Not having proper bookkeeping to keep track of expenses – this mistake can cause you to miss out on allowable expenses that will reduce your income and hence pay less in taxes. Bookkeeping is an ESSENTIAL part of any business and should be taken seriously, if it’s not your thing….no worries, find someone who can do it for you so that you can focus on the things that you are good at.
- Not filing your taxes on time – this mistake will cost you 5% of the taxes owed for every month that you are late …up to a maximum of 25% in addition to what you already owe!!! By avoiding mistake #2 and having proper monthly bookkeeping done, filing on time will surely not be a problem at tax time.
- Not setting aside money for taxes - this mistake could get you in trouble with the IRS when tax time comes around and you have already spent your earnings. Making sure you set aside some of your income and make your estimated taxes will help you stay IRS Debt-Free. We recommend setting aside 25-30% of your net earnings as a general rule-of-thumb.
- Not hiring a tax professional – this mistake can be the costliest, as by avoiding this ONE mistake you will most likely avoid all the other mistakes. Find a tax professional that can guide you and ensure that you are not overpaying in taxes and taking advantage of all available deductions.
If you want to avoid these mistakes and save money in taxes, Schedule a FREE CONSULTATION here: https://calendly.com/madelyn-10/free-initial-consultation
Don’t wait until the end of the year to get started, start getting organized today and avoid any surprises!