Accounting for Real Estate Brokers & Agents in Chicago
At Presti & Naegele, we deliver specialized accounting for real estate brokers & agents, built around the specific tax needs of professionals in the field. Every agent’s situation is different, which is why having accurate, strategic tax handling is so important.
From listing condos in the West Loop to showing homes along the North Shore or working high-rise deals in the Loop, Chicago real estate professionals count on us to simplify the tax side of their business while staying compliant and confident year-round.
Real Estate Agents and Brokers in Chicago
Real estate professionals in Chicago are categorized as self-employed, not traditional employees. That means you’re required to cover your own self-employment tax, which includes Medicare and Social Security. And with Illinois collecting state income tax, you're also expected to make routine estimated payments throughout the year.
CHOOSING THE RIGHT BUSINESS ENTITY in Chicago
Legal Structure: Your business setup determines how you’re taxed in Chicago. Presti & Naegele evaluates your individual situation and helps you select the best-fit legal entity.
✔ Sole Proprietorship – A basic setup where the agent and the business are treated as one.
✔ Limited Liability Company (LLC) – Offers flexibility in tax treatment and some legal protection.
✔ Partnership – Shared ownership and responsibility among two or more people.
✔ S-Corporation – Pass-through structure offering potential tax savings and corporate-level protections.
✔ C-Corporation – A more complex entity, taxed separately from its owners, ideal in some scenarios.
Record Keeping
Keeping organized records of your commissions, expenses, income, and tax documents is essential for real estate agents in Chicago. With the fast-paced market, professional property accounting services make it easier to stay on track and avoid surprises at tax time.
That's why you need
Property Accounting Services.
Tax Deductions
Working as a self-employed real estate agent in Chicago means you're eligible for several useful tax deductions. Our property accounting services help you take advantage of the most relevant ones, such as:
✔ Business Expenses: Marketing tools, advertising, licensing fees, and more.
✔ Home Office Deduction: Deduct a portion of household costs when working from a dedicated home office.
✔ Vehicle Expenses: Deduct mileage or vehicle costs tied to property showings, client meetings, or business errands in the city.
✔ Meals and Entertainment: Eligible expenses related to business lunches, client meetings, and networking events.
✔ Education and Training: Write off costs for courses, certifications, or continuing education.
✔ Health Insurance Premiums: Self-employed agents can deduct the premiums they pay for personal coverage.
Retirement Planning
Real estate brokers and agents in Chicago have several options for building retirement savings while reducing their taxable income. These plans provide flexibility and long-term value:
✔ Solo 401K Plans – A popular retirement option for independent agents in Chicago, offering generous tax-deductible contributions.
✔ Simplified Employee Pension (SEP) IRAs – Designed for self-employed professionals, these allow employers to make deductible contributions up to a specific percentage of earnings.
✔ Defined Benefit Plans – Offers a guaranteed benefit amount at retirement, growing tax-deferred and providing large deduction opportunities.
✔ Health Savings Accounts (HSA): Contributions are tax-deductible, growth is tax-free, and qualified medical withdrawals are also tax-free—making this a smart long-term savings tool.
Need More Information?
Contact Presti & Naegele today for a free consultation regarding property accounting services for real estate brokers and agents in Chicago.
For inquiries or expert guidance, contact Presti & Naegele Accounting Offices. Your success awaits!
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WHAT OUR CLIENTS ARE SAYING
I have had my business for more than 10 years and struggled through several *truly awful* accountants in the early years. I found Presti & Naegele about five years ago and have never looked back. They are a life-changing breath of fresh air and they will be my accountants for as long as I live. Donald Sager brings me confidence, peace and calm in an area of the business that would otherwise be stressful. He knows what he's doing and is always extremely responsive and ready with a plan of action and to explain anything at all. I am so grateful for him!
Eager to collaborate with Presti & Naegele?
We welcome the opportunity to understand your financial needs and tailor solutions for success. Join our distinguished clientele who have experienced the excellence of our services. Let's embark on a journey toward financial prosperity together.
