I have a full time job and I will also be working part time as a real estate salesperson. Are professional association fees, franchise fees and other expenses incured in the real estate business tax deductible? if yes, what income tax form will i report the expenses?
2006-10-13 08:00:18 · 3 answers · asked by Ferdi 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
If the real estate broker is treating you as an independent contractor, then you will report your income on a Schedule C, and you can deduct any direct expenses associated with that income on that form. Additionally, you might be able to deduct health insurance premiums that you pay on your own (assuming you aren't covered by a benefit plan at your full time job) as self-employed health insurance. If you will be treated as an employee by the real estate broker, you will need to report the expenses on a Form 2106, Employee Business Expenses. These expenses are deductible assuming you itemize, and also assuming you have enough of them and other miscellaneous expenses to exceed 2% of your Adjusted Gross Income. Go to www.irs.gov, and take a look at Schedule C, 2106, and Schedule A.
2006-10-13 08:06:35 · answer #1 · answered by jinenglish68 5 · 1⤊ 0⤋
Yes the fees are deductible... I'm not sure of the form numbers because I by Turbo Tax and answer the questions and it fills in the correct forms for me.... Sorry I can't help you with that.
2006-10-13 08:02:21 · answer #2 · answered by HSK's mama 6 · 0⤊ 0⤋
mate , u can get all that info of the net .good luck !
2006-10-13 08:02:01 · answer #3 · answered by ? 3 · 0⤊ 0⤋