Accounting for Real Estate Brokers & Agents in New York City
At Presti & Naegele, we specialize in accounting for real estate brokers & agents with tailored tax services designed to fit your unique circumstances. Every real estate agent in New York City faces different financial obligations, and staying on top of your taxes is key to protecting your earnings and avoiding unnecessary penalties.
Whether you're working deals in Manhattan, showing properties in Brooklyn, or hosting open houses in Queens, our expertise ensures you're covered when it comes to navigating the complexities of real estate accounting in New York City.
Real Estate Agents and Brokers in New York City
Because you’re not classified as an employee under your brokerage, the IRS considers you self-employed. As a result, you're responsible for paying self-employment taxes, which cover both Social Security and Medicare. On top of that, if you're operating in a state like New York that imposes income tax, you’ll also need to make consistent estimated tax payments throughout the year.
CHOOSING THE RIGHT BUSINESS ENTITY in New York City
Legal Structure: The way you pay taxes as a real estate professional in New York City largely depends on your business’s legal setup. At P&N, we assess your situation and help determine the best entity structure for your operation.
✔ Sole Proprietorship – The most basic structure, where the individual and business are legally one and the same.
✔ Limited Liability Company (LLC) – Offers liability protection like a corporation while maintaining the tax flexibility of a partnership.
✔ Partnership – Formed when two or more people share business ownership and responsibilities.
✔ S-Corporation – A pass-through entity blending corporate protections with partnership-style taxation.
✔ C-Corporation – A more complex structure that functions as an independent legal entity owned by shareholders.
Record Keeping
Maintaining detailed records of your transactions, commissions, expenditures, and tax paperwork is vital. Staying organized ensures accurate accounting for real estate brokers & agents in New York City, especially when tax season rolls around. That’s why engaging in professional property accounting services is a must.
That's why you need
Property Accounting Services.
Tax Deductions
As a self-employed agent in New York City, you’re eligible for a range of tax write-offs, which we help manage through our property accounting services. Common deductions include:
✔ Business Expenses: Costs like marketing, office materials, and service fees tied to your real estate business.
✔ Home Office Deduction: If you work from a dedicated space in your home, a portion of your rent, utilities, and other related expenses may be deductible.
✔ Vehicle Expenses: You can write off either mileage or actual auto costs when used for business.
✔ Meals and Entertainment: A percentage of your client-facing meal and entertainment expenses can be deducted.
✔ Education and Training: Costs for seminars, licensing courses, and other professional development programs.
✔ Health Insurance Premiums: Self-employed agents may deduct premiums paid for health insurance.
Retirement Planning
New York City real estate professionals have access to multiple retirement planning options that can help delay taxation and build long-term financial security. Here are some of the most popular routes:
✔ Solo 401K Plans – Designed for solo agents or small teams, these allow for high annual contributions, with tax-deductible inputs and tax-deferred earnings.
✔ Simplified Employee Pension (SEP) IRAs – Great for self-employed individuals; contributions are deductible, and funds grow tax-deferred. Employers can contribute up to a set percentage of net earnings.
✔ Defined Benefit Plans – These offer fixed retirement payouts, whether lump sums or ongoing pensions, and allow for larger contribution deductions than most other plans. Earnings within the plan grow tax-deferred until retirement.
✔ Health Savings Accounts (HSA): A powerful savings tool that offers triple tax benefits—contributions are deductible, investments grow tax-free, and qualified medical 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 New York City.
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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