Accounting for Real Estate Brokers & Agents in Philadelphia
At Presti & Naegele, we specialize in accounting for real estate brokers & agents, offering reliable tax support to real estate professionals throughout the Philadelphia area. Since every agent’s financial situation is different, our services are designed to fit your specific needs and keep your taxes on track.
Whether you're working with buyers in Center City, handling listings in Fishtown, or managing properties in the Main Line suburbs, real estate agents across Philadelphia trust us for tax solutions that make sense and save time.
Real Estate Agents and Brokers in Philadelphia
Philadelphia real estate agents are treated as self-employed, which means you’re responsible for your own self-employment taxes—covering Social Security and Medicare. Additionally, Pennsylvania’s income tax and the city’s wage tax require regular estimated payments to stay compliant.
CHOOSING THE RIGHT BUSINESS ENTITY in Philadelphia
Legal Structure: The way your real estate business is set up in Philadelphia will determine how your income is taxed. At Presti & Naegele, we help agents choose the most suitable business entity based on their goals.
✔ Sole Proprietorship – The most basic setup, where business income flows directly to your personal tax return.
✔ Limited Liability Company (LLC) – Combines liability protection with tax filing flexibility.
✔ Partnership – For agents sharing business responsibilities, profits, and losses.
✔ S-Corporation – May offer tax savings by allowing pass-through income and separating personal liability.
✔ C-Corporation – A separate entity that files its own taxes and can be a good fit for more complex real estate businesses.
Record Keeping
Keeping detailed records of your commissions, expenses, and tax-related documents is crucial for agents operating in the Philadelphia market. Our property accounting services in Philadelphia help keep everything accurate and organized so you can avoid headaches at tax time.
That's why you need
Property Accounting Services.
Tax Deductions
If you’re self-employed in Philadelphia’s real estate market, there are a range of tax deductions available to you. With our property accounting services, we help identify and apply these deductions effectively. Common ones include:
✔ Business Expenses: Marketing costs, listing tools, photography services, and office supplies.
✔ Home Office Deduction: If you use a space in your home exclusively for work, you may be able to deduct part of your household expenses.
✔ Vehicle Expenses: Mileage and other travel-related costs connected to your real estate business.
✔ Meals and Entertainment: Partial deductions may apply for client meetings and business-related meals.
✔ Education and Training: Includes real estate courses, licensing fees, and continuing education.
✔ Health Insurance Premiums: You may deduct the premiums you pay if you’re self-employed and covering your own health insurance.
Retirement Planning
Philadelphia real estate brokers and agents have several options to plan for retirement while reducing their taxable income. The right plan depends on your income level and long-term goals.
✔ Solo 401K Plans – Great for independent agents, these plans allow for large annual contributions and tax-deferred growth.
✔ Simplified Employee Pension (SEP) IRAs – Offers flexibility and easy setup for self-employed agents looking to save for retirement.
✔ Defined Benefit Plans – Provides a guaranteed retirement benefit with the ability to deduct sizable contributions.
✔ Health Savings Accounts (HSA): A triple tax benefit—contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
Need More Information?
Contact Presti & Naegele today for a free consultation regarding property accounting services for real estate brokers and agents in Philadelphia.
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.
