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Is real estate agent contracted by a company considered a business?

 
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GeoffreyG
New Member

Is real estate agent contracted by a company considered a business?

A real estate agent under these circumstances could be either an employee, or a self-employed person (a.k.a. "a business").  Someone working for themselves, independently, either as a sole-proprietor, a single-member LLC, or similar, is said to be a business (or alternatively in business) for income tax reporting purposes.

Whereas corporations and partnerships file income tax returns for their business activities, which is separate and distinct from their individual stockholders or partners -- with self-employed persons, these individuals file their business activities on the same primary tax return as all taxpayers use (the familiar 1040 series).  Specifically, they file what is known as Form 1040, Schedule C, along with Schedule SE.

The key distinction for practical purposes between knowing who is an employee and who is an independent contractor (i.e. in business as a self-employed person), is to look at their tax documents.

Did you receive a W-2 for your work activity (real estate agent, for instance) last year?  If so, then you're an employee; don't use Schedule C and SE.  Report your wages under the W-2 section of TurboTax.

Did you receive a Form 1099-MISC from your "employer," or were you paid in cash, by check, or by commission, and not receive a W-2?  If so, then you're an independent contractor, in business for yourself, and you need to file Form 1040 Schedule C and SE.  Report your income and expenses in the self-employed / business section of TurboTax.

Hopefully that information answered what you are asking about. 

However, if you have further questions, or just want to speak with a live tax expert who can walk you through your TurboTax entries (including the ability to screen-share with your computer), please feel free to contact us.  We would be happy to help you (and as a paying customer, the call is free to you).  Here is a link where you can create a support ticket and reach us:

https://support.turbotax.intuit.com/contact/

Thank you for posting on the AnswerXchange.

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1 Reply
GeoffreyG
New Member

Is real estate agent contracted by a company considered a business?

A real estate agent under these circumstances could be either an employee, or a self-employed person (a.k.a. "a business").  Someone working for themselves, independently, either as a sole-proprietor, a single-member LLC, or similar, is said to be a business (or alternatively in business) for income tax reporting purposes.

Whereas corporations and partnerships file income tax returns for their business activities, which is separate and distinct from their individual stockholders or partners -- with self-employed persons, these individuals file their business activities on the same primary tax return as all taxpayers use (the familiar 1040 series).  Specifically, they file what is known as Form 1040, Schedule C, along with Schedule SE.

The key distinction for practical purposes between knowing who is an employee and who is an independent contractor (i.e. in business as a self-employed person), is to look at their tax documents.

Did you receive a W-2 for your work activity (real estate agent, for instance) last year?  If so, then you're an employee; don't use Schedule C and SE.  Report your wages under the W-2 section of TurboTax.

Did you receive a Form 1099-MISC from your "employer," or were you paid in cash, by check, or by commission, and not receive a W-2?  If so, then you're an independent contractor, in business for yourself, and you need to file Form 1040 Schedule C and SE.  Report your income and expenses in the self-employed / business section of TurboTax.

Hopefully that information answered what you are asking about. 

However, if you have further questions, or just want to speak with a live tax expert who can walk you through your TurboTax entries (including the ability to screen-share with your computer), please feel free to contact us.  We would be happy to help you (and as a paying customer, the call is free to you).  Here is a link where you can create a support ticket and reach us:

https://support.turbotax.intuit.com/contact/

Thank you for posting on the AnswerXchange.

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