If you are a real estate agent with a professional limited liability company, if you are a member of the PLLC and not an employee, then you would be considered a Self-Employed Realtor.
How you file your return will depend on if you are the only member or if it is a multi member LLC.
If you are the only member of the PLLC, or you receive a 1099-NEC from the PLLC, then you would use TurboTax Premier Online or TurboTax Home and Business to file a Schedule C reporting your income and expenses as part of your return. This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax. If you did not pay SE Taxes in 2023, and if you plan to do this again in 2024, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
If you have health insurance through a non-employer, you may also be able to deduct your health insurance premiums as a business deduction. The Self-Employed Health Insurance deduction is limited to your earnings. Meaning, you cannot deduct more than you earned. This is also entered in the business expense section.
If you have a multi-member PLLC, then you would use TurboTax Business to prepare a form 1065 partnership return. The partnership return is due March 15th instead of April 15th. When you prepare this return, it will generate a Schedule K-1 for each partner that each of you will add to your personal returns.
If you are an employee of the PLLC, then you would get a W2 from your employer and enter it in the income and wages section.
Tax Tips for Real Estate Agents and Brokers
Taking Business Expense Deductions
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