I just shot an important video on How Agents Can Pay LESS Income Tax…
Many agents ask me if they can shelter their income and pay less income tax by getting their brokers to pay an entity that they form out of their homes.
For example, the salesperson makes $80,000 working at his real estate company, but $50,000 of it is paid to his “home corporation” and he shelters the income by claiming depreciation on his home office in addition to a whole lot of other “legal” deductions.
My answer has always been NO. State rules allow your broker to pay another broker but NOT another salesperson working as an entity. So here is what you can do.
Why don’t you become a broker and start a company at your home and get the broker to pay you commissions to your “home realty” so you can shelter much of that income?
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