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10 IRS Tax Rules Every Real Estate Agent Should Know

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Mortgage Professional America | 23 Nov 2012, 11:21 AM Agree 0
Real estate can be a tricky business, especially when it comes to taxes and following tax law.
  • realtor in happy valley | | 24 Nov 2012, 01:13 AM Agree 0
    A real estate agent should have proper knowledge about tax. Thanks for sharing this information with us. As a real estate agent point of view, all tips must be followed by a real estate agent.
  • John S | | 25 Nov 2012, 02:28 AM Agree 0
    Thanks for sharing. I went to thier website and I was able to sign up for alerts. I may actually be able to keep informed.
  • dan h | | 26 Nov 2012, 01:47 PM Agree 0
    Realtors should.not give tax advice. and should refer tax related questions to a
    n accoutant.
  • Knowitall | | 26 Nov 2012, 01:53 PM Agree 0
    I re-read this article, based on your comment, no where does it say Realtors should advise their clients about Tax related questions. But yes, if you are making a general statement, i agree with you.
  • Justin Stranere | | 26 Nov 2012, 02:49 PM Agree 0
    I agree Dan that a realtor should NOT give tax advice. But as a PA Licensed realtor myself, it is my job to have basic tax knowledge. If you know a client is going to be subject to capital gains and you help them speak to an accountant ahead of listing their home and understanding the taxes, your doing your job. If you don't, and they end up selling for a lower price and/or limited equity, and then at the closing table they read/sign the form that will prompt the IRS tax question's, and they later find out they owe more in gains then the walked from closing with.......most clients won't think to highly of you and you will reduce/eliminate the chance of doing business with that client and/or ever receiving a referral from that client. We can't offer advice in fields we are NOT the expert.......but we are supposed to put our clients best interest first and thinking ahead for these situations, in my opinion, is our duty.
  • William Matz | | 26 Nov 2012, 04:01 PM Agree 0
    #1,2 need to be read together. #1 says "any gain", but #2 provides the limits on what can be excluded.

    The biggest error on taxation of homes is not on the gain, the rules for which are fairly well known. Rather it is what mortgage interest that is deductible. That deduction is limited based on the mortgage used to purchase. If a residence is bought for cash and later refinanced, NONE of the interest is deductible as home mortgage interest (although some may be deductible otherwise).

    PS- I'm a tax attorney.
  • Dana Caffrey | | 27 Nov 2012, 07:29 AM Agree 0
    Thanks for sharing this information. I believe that a real estate agent should have proper knowledge about tax, although it is not necessary for a real estate agent to have a true knowledge about that. Your page already bookmarked.
  • Lollie Real | | 27 Nov 2012, 11:33 AM Agree 0
    Very grateful for the new updates, I can use lots of the info, since mmost of my clients are very informed, and when it comes to given any advice, I refer them to a Tax Attorney or their CPA...happy selling in Southern California...
  • Gary Matlock | | 28 Nov 2012, 03:41 PM Agree 0
    It would be wonderful if you could make your articles printer-friendly capable!
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