Real estate broker

[bilal]

i am a real estate broker and this is the first year of filling, i am a bit confused which form i should file, i am the only agent in the company so i will be giving my self a 1099.

i am using Turbotax business.

[tagteam]

Why are you using TurboTax Business? What type of company (entity) do you have, if any?

[bilal]

its an LLC .

so do issue a 1099 to my self and file broker office as 1120s ?

Ty

[tagteam]

If it is an LLC, did you make an election to be taxed as a S corporation? Did you file Form 2553?

[bilal]

turbo tax business is what i use for my other LLC and my real estate P.A

[bilal]

no

[tagteam · Accepted solution]

Is the LLC a single-member LLC? Are you the only member? If so, and you did not elect to be treated as a corporation for federal income tax purposes, then the LLC is considered a disregarded entity for federal income tax purposes.

In that event, all of the income and expenses flow through directly to you as if the LLC did not exist and you should be filing your personal income tax return (Form 1040) with a Schedule C for your brokerage firm.

[bilal]

yes it is a single member llc

can i file form 2553 now, because it sound like i will not be able to take any deductions for business expenses. 

if not can i change it next year.

[tagteam · Accepted solution]

You can still take deductions for business expenses as a sole proprietor filing Schedule C; you do not need to elect S corporation status for that purpose.

If you make an election at this point in time, it will be effective for next year (the 2020 tax year).

See https://www.irs.gov/instructions/i2553#idm139773190567344

[bilal]

So for the broker office i should file as sole proprietorship form 4835 or as a Corporation form 1120 /  1120 S

[tagteam]

No! You do not need TurboTax Business for a sole proprietorship; you have the wrong product. You need a TurboTax personal income tax product, such as TurboTax Self-Employed or TurboTax Home & Business.

[bilal]

so i do not fall in to the corporation category to file before 08/15.

i had file an extension in march 15th

[tagteam]

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@bilal  wrote:

so i do not fall in to the corporation category to file before 08/15.

i had file an extension in march 15th

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Whatever gave you the impression that you "fall into the corporation category"?

Did you ever file Articles of Incorporation in your state?

[bilal]

yes 

[Critter]

Clarifying question... Did you set up the brokerage firm as a corporation? If so are you paying yourself a wage as an employee of that corporation? Does the corporation have a separate EIN number from yourself? Personally I think you need to seek local professional guidance if this is your first tax return for this business so you get it completed correctly and avoid penalties.