Yes we can deduct many things but I;m not sure it would be come out to save us any money in the long run. We still have to pay a ridiculous amount in taxes. And the problem is that many agents don’t do a good job of saving up when the time comes to pay them. That’s the root of the issue.

If you have a staff then you are probably paying them using a payroll service which takes taxes out of their paychecks. Most Realtor teams in my office use a company called ADP to pay their staff and the taxes are taken care of that way. So why would a broker have to hire anyone? I don’t see what you mean by that.

It’s simply a notion of convenience and saving us the time to calculate all of these things and will also save us the money we spend on CPA’s. And no one has ever shown me proof that it will cost us more if they tax our commissions vs. doing taxes ourselves. If you have that information I would love to see it.

But, failing that, are you saying that a death of a thousand cuts would be better? Most people have NO idea what they pay in taxes because they never see it. We do.

The next issue is deductibility. We have the capability of deducting MANY things than we wouldn’t be able to deduct if we were employees… to tack some more money onto that bill.

Finally, for those of us that have staffs, would our broker have to hire them as well. I don’t know about oyu, but I run a business. I’m not just an employee that is responsible for my own taxes.