Accounting for Real Estate Brokers & Agents in San Francisco
Presti & Naegele provides expert accounting for real estate brokers & agents, tailoring our tax services to the unique needs of real estate professionals. Every agent’s situation is different, and having the right tax guidance helps you stay efficient and protected.
Whether you're closing deals in the Mission District, showing properties in Pacific Heights, or working high-value listings in SoMa, San Francisco real estate agents benefit from our personalized approach to handling taxes and compliance.
Real Estate Agents and Brokers in San Francisco
As a real estate agent in San Francisco, you're treated as self-employed, not as an employee of your brokerage. This means you’re required to pay your own self-employment taxes, which cover Medicare and Social Security. Additionally, California’s state income tax system requires timely estimated payments to stay compliant and avoid penalties.
CHOOSING THE RIGHT BUSINESS ENTITY in San Francisco
Legal Structure: Your tax responsibilities as a San Francisco real estate agent depend heavily on how your business is set up. Presti & Naegele reviews your setup and advises on the most tax-efficient structure for your needs.
✔ Sole Proprietorship – The simplest structure, where the agent and business are legally one.
✔ Limited Liability Company (LLC) – Offers a flexible setup with some legal protection and pass-through taxation.
✔ Partnership – Designed for co-owned ventures where responsibilities and income are shared.
✔ S-Corporation – Allows pass-through taxation while offering legal separation between you and the business.
✔ C-Corporation – Treated as a distinct legal entity with a more formal tax structure, ideal for growing operations.
Record Keeping
To manage your tax obligations effectively, it’s essential to keep detailed records of commissions, business expenses, and all financial documentation. Our property accounting services in San Francisco help real estate agents stay organized and ready come tax time.
That's why you need
Property Accounting Services.
Tax Deductions
Real estate agents in San Francisco who are self-employed can take advantage of a variety of deductions. Our property accounting services help ensure no opportunity is missed. Common deductions include:
✔ Business Expenses: Costs like advertising, online listing tools, staging services, and office supplies.
✔ Home Office Deduction: If you have a designated workspace at home, you may be eligible to deduct a portion of home-related costs.
✔ Vehicle Expenses: Mileage and other travel expenses linked to business use around the Bay Area.
✔ Meals and Entertainment: Deduct part of your expenses for client meetings or business meals.
✔ Education and Training: Fees for licensing courses, industry seminars, and continuing education.
✔ Health Insurance Premiums: Deductible for self-employed agents who pay their own coverage.
Retirement Planning
In San Francisco’s competitive market, real estate agents should be thinking about retirement just as strategically as their day-to-day business. Several tax-smart options are available to help you plan ahead:
✔ Solo 401K Plans – These plans let self-employed agents contribute significant pre-tax income, with tax-deferred growth.
✔ Simplified Employee Pension (SEP) IRAs – Easy to set up and great for self-employed professionals, with flexible contributions based on earnings.
✔ Defined Benefit Plans – Offers consistent, predictable retirement payouts and allows for larger tax-deductible contributions.
✔ Health Savings Accounts (HSA): A tax-efficient option for agents with high-deductible health plans—contributions, growth, and withdrawals (for medical expenses) are all tax-free.
Need More Information?
Contact Presti & Naegele today for a free consultation regarding property accounting services for real estate brokers and agents in San Francisco.
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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