Accounting for Real Estate Brokers & Agents in Los Angeles
Presti & Naegele delivers trusted expertise in accounting for real estate brokers & agents, with services built to suit the unique needs of every real estate professional. Managing your taxes correctly is a critical part of maintaining your earnings and avoiding financial missteps.
Whether you’re closing deals in Beverly Hills, showing beachfront homes in Venice, or managing listings across downtown Los Angeles, we help agents in LA stay compliant and confident when it comes to their taxes.
Real Estate Agents and Brokers in Los Angeles
Real estate agents in Los Angeles are typically considered self-employed since they don’t fall under the employee category with their brokerage. This means you're responsible for paying your own self-employment tax, covering Medicare and Social Security contributions. On top of that, California income tax requires that you make regular estimated tax payments to stay ahead of your obligations.
CHOOSING THE RIGHT BUSINESS ENTITY in Los Angeles
Legal Structure: How you’re taxed as a real estate agent in Los Angeles depends on your business’s legal setup. At P&N, we take a look at your unique situation and advise on the most appropriate entity structure for your goals.
✔ Sole Proprietorship – A straightforward business type where the individual and the business are one.
✔ Limited Liability Company (LLC) – Offers both liability protection and flexibility in how taxes are handled.
✔ Partnership – Suited for teams or duos in real estate, where ownership and responsibilities are shared.
✔ S-Corporation – Combines the legal advantages of a corporation with the tax flow-through of a partnership.
✔ C-Corporation – A full corporate structure that stands alone legally and comes with added complexity.
Record Keeping
Tracking expenses, income, commission payouts, and tax documents is a must for real estate agents in Los Angeles. Staying organized helps ensure accurate reporting and smooth tax preparation. That’s why professional property accounting services in Los Angeles are so important for real estate brokers and agents.
That's why you need
Property Accounting Services.
Tax Deductions
As a self-employed professional in Los Angeles, you’re able to claim several business deductions with help from our property accounting services. These common write-offs include:
✔ Business Expenses: Marketing materials, office supplies, advertising fees, and more.
✔ Home Office Deduction: If you maintain a dedicated home office, you may be eligible to deduct a portion of your home-related costs.
✔ Vehicle Expenses: Any business-related driving in and around Los Angeles can qualify for mileage or vehicle cost deductions.
✔ Meals and Entertainment: You can deduct a portion of qualifying meal expenses when meeting with clients or prospects.
✔ Education and Training: Real estate courses, webinars, licensing, and similar programs may be deductible.
✔ Health Insurance Premiums: Self-employed agents can deduct health insurance premiums they’ve paid for themselves.
Retirement Planning
For real estate agents in Los Angeles, building a secure retirement means knowing which savings options best fit your income and business structure. Here are some of the most commonly chosen plans:
✔ Solo 401K Plans – Designed for self-employed agents and small business owners, these allow for substantial contributions and tax-deferred growth.
✔ Simplified Employee Pension (SEP) IRAs – An efficient retirement plan for self-employed agents in Los Angeles, offering high contribution limits and tax-deferred earnings.
✔ Defined Benefit Plans – Provide a fixed retirement benefit, often higher than other plan types, with tax-deferred earnings and deductible employer contributions.
✔ Health Savings Accounts (HSA): With triple tax advantages—deductible contributions, tax-free growth, and tax-free qualified medical withdrawals—HSAs are a powerful tool for long-term savings.
Need More Information?
Contact Presti & Naegele today for a free consultation regarding property accounting services for real estate brokers and agents in Los Angeles.
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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