Richie Alan  Naggar, agent & author  (people first...then business Ran Right Realty )

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Rainmaker
930,088
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Seems fishy. If he is audited, can he show that he is paying these "people" for goods or services? Is he providing a 1099 form to those to whom he is writing checks?

If you run this one by your tax professional, I think you may see raised eyebrows.

Dec 20, 2021 01:33 PM
Rainmaker
535,153
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

This will be one very fun audit ... good luck. 

Dec 20, 2021 02:40 PM
Rainmaker
564,962
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

That sounds like he may be doing something the IRS would like to see to justify the business expense.

Dec 20, 2021 02:33 PM
Rainer
124,119
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

It sounds a little fishy to me.  I'm not a CPA, so maybe there is some loophole that I don't know about.  But it doesn't sound like something I want to try.

Dec 20, 2021 01:59 PM
Rainmaker
4,184,314
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Personally, I'd like to see him explain this to the IRS when he gets audited!

Dec 20, 2021 01:23 PM
Ambassador
2,633,085
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Danger, Will Rogers! Danger, there is an imminent audit in his near future!

Dec 20, 2021 06:21 PM
Ambassador
3,083,213
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Sounds like a slippery slope, Richie. 

I have not had or heard of that experience.  If I know people that do it, they have not shared it with me. Nor has anyone given me a check that was supposed to be for work I did not do. 

I wonder what the guy's CPA has to say about that practice? If the CPA even knows.  

Dec 20, 2021 04:04 PM
Ambassador
1,828,688
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

So you're asking... have we heard of people who "cheat on their taxes"?

Dec 20, 2021 03:40 PM
Rainmaker
904,347
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Good luck with the audit! 

CPA stat!

Dec 20, 2021 04:15 PM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

The govt may not agree with his methodology.

Dec 20, 2021 08:22 PM
Rainmaker
708,544
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Alan May hit the nail on the head. A question to your question, are the people he is paying claiming the money that he has paid them as income? What he is doing probably is not legal, unless everyone he is paying is  claiming it as income and paying taxes on it. Doesn't seem right to me.

Dec 20, 2021 04:30 PM
Rainmaker
5,656,055
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Richie,

No,  and I would not want to know this guy.  A

Dec 20, 2021 04:08 PM
Rainmaker
1,731,120
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

He will have a new location in a penitentiary.

Dec 21, 2021 05:59 AM
Ambassador
3,293,228
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Not a wise move on this guys part.  We follow our CPA's lead and are good with her advice year after year. 

Dec 20, 2021 08:53 PM
Rainmaker
1,042,795
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

No, I have not heard of this but am willing to be "test case" on the receiving end. Jeff 😎

Dec 20, 2021 05:43 PM
Ambassador
4,610,196
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

He'd better hope he doesn't get audited. Wonder how he would justify those business expenses?

Dec 20, 2021 05:39 PM
Rainmaker
561,579
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

If you're looking for a beneficiary to reap the benefits of your disbursements, I will graciously volunteer...because I care!

Dec 20, 2021 05:17 PM
Rainmaker
549,240
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

I have not heard of that and will try to forget I heard that here.

Dec 20, 2021 04:33 PM
Ambassador
4,314,559
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I walk on by, Richie, knowing that a good, old-fashioned, IRS audit will take care of those people!

Dec 21, 2021 09:06 PM
Rainmaker
759,531
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Good luck to him. I wouldn't try this without talking to a professional first. If he isn't careful, he'll be writing check to someone to keep him out of jail.

Dec 21, 2021 06:39 AM
Rainmaker
871,732
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Richie, 

He would be better served by giving the money to worthy organizations like St. Jude Children's Research Hospital or Shriner's Hospitals for Children and receive a legitimate tax deduction and help children and their families.

Dec 21, 2021 06:26 AM
Rainmaker
4,271,666
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Many get creative to avoid taxes. Many get caught and pay the price. Seek professional advice.

Dec 21, 2021 04:02 AM
Rainmaker
827,932
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

No, I have not Richie, but it doesn't surprise me one bit...

Dec 21, 2021 11:37 AM
Rainmaker
774,578
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

My guess is he has figured out a system that works for him.  I am not aware of many folks who love to pay taxes. I also am not aware of anyone who loves to be audited.  I would rather pay the taxes and move on...and sell another property.

Jan 01, 2022 08:22 AM