when you close a real estate purchase, do they deduct the taxes right there? or they give you your hole commission and then you deduct the taxes when it comes the tax due date (April)?
2007-10-07 15:51:55 · 5 answers · asked by Luna 2 in Business & Finance ➔ Renting & Real Estate
I'm in texas
2007-10-07 17:48:05 · update #1
in california real estate agents are treated as independent contractors and nothing is withheld from the commission check. they are given 1099's at the end of the year, not w-2's
2007-10-07 16:43:21 · answer #1 · answered by ErasmusBDragen 4 · 0⤊ 0⤋
It may depend on the state you live in..but in Alabama the Realtor has to budget for taxes themselves by taking it out of the commission price. Which can be a great thing if you don't let it get away from you. What I did is open up a savings account that serves as my own little escrow for taxes. You should take out around 15-20% for taxes. Overbudget so you aren't short at the end of the year when you get your 10-99 tax form. This will tell you how much you owe.
2007-10-07 16:11:05 · answer #2 · answered by Brooke~* 3 · 0⤊ 0⤋
In Colorado, you are an independent contractor and nothing is held from your commission check. You are responsible for your own taxes at the end of the year.
2007-10-08 06:57:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
In Oregon, we are also independant contractors and expected to take care of our own tax issues. I receive the whole commission, but tuck a portion away for the IRS.
2007-10-07 17:25:03 · answer #4 · answered by godged 7 · 0⤊ 0⤋
If you're an agent working for a broker, the broker will withhold the taxes from your commission check. If you're a broker, you're usually self employed and must make quarterly estimated tax payments to the IRS and your State tax authorities.
2007-10-07 16:09:40 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋