Accounting for Real Estate Brokers & Agents in Connecticut
Presti & Naegele offers experienced accounting for real estate brokers & agents, built to meet the distinct tax needs of professionals across Connecticut. Every agent has different goals and financial scenarios, and we provide tax support that keeps you compliant and focused on what matters most—your clients.
Whether you’re showing homes in Fairfield County, handling listings in New Haven, or managing deals in Hartford, real estate professionals throughout Connecticut rely on us for dependable tax services that help streamline their business operations.
Real Estate Agents and Brokers in Connecticut
In Connecticut, real estate agents are classified as self-employed. This means you’re responsible for paying self-employment taxes, which include both Social Security and Medicare. Additionally, Connecticut’s state income tax requires that you submit estimated tax payments on a quarterly basis to avoid falling behind.
CHOOSING THE RIGHT BUSINESS ENTITY in Connecticut
Legal Structure: How you're taxed in Connecticut depends on how your real estate business is legally structured. At Presti & Naegele, we help agents determine the setup that best fits their work and financial strategy.
✔ Sole Proprietorship – The most common form for agents starting out; income is reported through your personal return.
✔ Limited Liability Company (LLC) – Offers liability protection and flexible tax filing options.
✔ Partnership – For real estate professionals working as a team and sharing the business workload and income.
✔ S-Corporation – Pass-through taxation with the benefits of a corporate structure and potential tax savings.
✔ C-Corporation – A standalone business entity with more complex filing requirements and its own tax structure.
Record Keeping
Tracking your commissions, expenses, and tax records is crucial in the fast-moving Connecticut market. Our property accounting services in Connecticut are designed to help real estate agents stay organized, accurate, and prepared come tax time.
That's why you need
Property Accounting Services.
Tax Deductions
Real estate brokers and agents in Connecticut who are self-employed are eligible for a variety of tax deductions. With our property accounting services, we help ensure those deductions are fully leveraged. Common ones include:
✔ Business Expenses: Items like digital tools, advertising, real estate signs, and subscriptions.
✔ Home Office Deduction: If you maintain a home office, a percentage of your rent or utilities may be deducted.
✔ Vehicle Expenses: Mileage and other travel expenses for property tours or client visits are often deductible.
✔ Meals and Entertainment: Business-related dining and entertainment costs may qualify for partial deductions.
✔ Education and Training: Expenses tied to courses, seminars, and real estate certifications.
✔ Health Insurance Premiums: Premiums paid for personal health coverage may be deductible if you're self-employed.
Retirement Planning
Connecticut agents can take advantage of several retirement plan options that help reduce taxable income while building financial security for the future. These plans are flexible and tailored for independent professionals.
✔ Solo 401K Plans – A popular choice for independent agents, allowing high annual contributions and tax-deferred savings.
✔ Simplified Employee Pension (SEP) IRAs – Allows flexible contributions based on business earnings and is easy to set up.
✔ Defined Benefit Plans – Delivers a fixed retirement benefit and offers large annual deduction opportunities.
✔ Health Savings Accounts (HSA): Provides triple tax benefits—contributions are deductible, growth is tax-free, and qualified withdrawals are also tax-free.
Need More Information?
Contact Presti & Naegele today for a free consultation regarding property accounting services for real estate brokers and agents in Connecticut.
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!
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