A recent tax court case shows how real estate agents and brokers can have trouble with the IRS, not because they did anything wrong, but simply because they don’t have the proper documentation. Marvell Preston-Hardnett, a licensed real estate agent, worked as an independent contractor for Re/Max Hometown, Inc. In 2008, she earned $11,100 from her real estate business and had expenses of $20,580, resulting in a $9,480 net loss for the year. As often happens when an independent contractor reports annual losses, Hardnett was audited by the IRS, which disallowed some of her claimed business expenses. Among these was $4,725 in fees she paid to Re/Max during the year. Hardnett told the IRS that she had to pay a $350 monthly affiliation fee to Re/Max. Moreover, she had had monthly sta...
Aug 2, 2013 by Stephen Fishman
Jul 19, 2013 by Stephen Fishman