cancel
Showing results for 
Search instead for 
Did you mean: 
Level 7

Real estate broker

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.

 

 

2 Best answer

Accepted Solutions
Level 18

Real estate broker

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.

Highlighted
Level 18

Real estate broker

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

22 Replies
Level 18

Real estate broker

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

Level 7

Real estate broker

its an LLC .

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

Ty

Level 18

Real estate broker

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

Level 7

Real estate broker

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

Level 7

Real estate broker

no

Level 18

Real estate broker

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.

Level 7

Real estate broker

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.

 

Highlighted
Level 18

Real estate broker

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

Level 7

Real estate broker

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

Level 18

Real estate broker

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.

 

Level 7

Real estate broker

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

i had file an extension in march 15th

Level 18

Real estate broker


@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


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

 

Did you ever file Articles of Incorporation in your state?

Level 7

Real estate broker

yes 

 

Level 20

Real estate broker

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.