Why real estate agents need different books
Big commissions at uneven times, brokerage splits and fees taken before you're paid, marketing for every listing, and a car that's half office. The irregular income makes setting aside tax the hardest part.
What a bookkeeper for real estate agents keeps track of
- Commissions, with the brokerage's split and fees
- Marketing and listing costs
- Your car and mileage
- Tax to set aside from each deal
- Desk fees and licensing
In the US
- Your brokerage usually sends a 1099-NEC for your commissions.
- Self-employment tax and quarterly estimated payments apply, since nothing is withheld from commissions.
- Mileage between showings and listings is a business cost.
In Canada
- Commissions take GST/HST once your income passes $30,000 in four quarters in a row.
- Nothing is withheld from commissions, so you may need CRA instalments.
- Keep a vehicle logbook to claim your car.
What SumSwift does for realtors
- Commission deposits sorted with the brokerage's fees split out
- What to set aside for income tax from each deal, with estimated payments or instalments and their due dates
- A mileage log (a CRA logbook in Canada) and the business share of your vehicle worked out for taxes
- Receipts snapped with your phone or forwarded by email are read and matched to the charge
- A year-end package and free access for your accountant
- Every statement checked against the balances your bank printed, to the cent, with personal spending kept off your profit