Michael Petruccelli asks; Do you have a check list of tax deductions for Realtors?(5)

Michael Petruccelli says;  What can you deduct?

There are dozens of possible tax deductions for real estate professionals. Any expense for your real estate business is deductible if it is:

• ordinary and necessary;
• directly related to your business; and
• reasonable in amount

An expense doesn’t have to be indispensable to be necessary; it need only help your business in some way — even if it’s a minor way. A one-time expenditure can be ordinary and necessary.

Michael Petruccelli asks; Do you have a check list of tax deductions for Realtors?(4)

Michael Petruccelli says;  Additional business deductions are worth less if your income exceeds the $113,700 Social Security tax ceiling, because you don’t have to pay the 12.4 percent Social Security tax.

Michael Petruccelli asks; Do you have a check list of tax deductions for Realtors? (3)

Michael Petruccelli says; For example, if you’re single and your taxable business income is $100,000, every dollar you deduct from your taxable income will save you close to 50 cents in taxes. This includes 28 percent in federal income taxes, 15.3 percent in self-employment taxes, and an average of 6 percent in state income taxes.

Michael Petruccelli asks; Do you have a check list of tax deductions for Realtors? (2)

Michael Petruccelli says;  Tax deductions really add up

Many people, even sophisticated real estate professionals, don’t fully appreciate just how much money they can save with tax deductions. To understand the full value of your deductions, you must add up your total savings in federal and state taxes, and self-employment taxes.

Michael Petruccelli asks; Do you have a check list of tax deductions for Realtors?

These may not be the worst of times for real estate professionals, but they certainly are not the best either. To add insult to injury, it is almost tax time.

However, there’s one thing you can do to help keep your head above water: Take all the tax deductions to which you are entitled.

What do you think Mike was talking to Governor Rick Scott about?