I just got my california real estate license. I was informed by several interviewing brokers that in addition to franchise or desk fees, i will be paying membership fees on local or national realty association as required by my state. Are these fees tax deductible? your reply is greatly appreciated.
2006-10-13 02:34:36 · 2 answers · asked by Ferdi 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Yes, they are deductible. If you are self employed, then the fees will be deducted on your Schedule C when determining your business net income.
If you are an employee of someone else, they are deductible on Sch. A if you itemize your deductions. In this case, the deduction is limited to the amount greater than 2% of your Adjusted Gross Income. For instance, if your adjusted income is $50,000 and you pay fees totaling $1500, then you would get a deduction on Schedule A in the amount of $500 (50,000 x 2% = 1,000 disallowed).
2006-10-13 03:55:24 · answer #1 · answered by Jeff C 2 · 1⤊ 0⤋
For the Sch C you will fill out as a real estate sales person any membership fees in professional associations are fully deductible; as are any and all expenses you incur in the course of doing business.
2006-10-13 10:51:39 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋