The vast majority of real estate brokers and agents are self-employed sole proprietors. They are often married to spouses who are self-employed as well. Marital togetherness is great, but when spouses each have their own separately run business, they need to keep their business income (or losses) separate for self-employment tax purposes.
What do you do when you own an apartment building that you want to get rid of but no one wants to buy? One strategy owners of undesirable properties often use is to give the property to a charity and take a charitable deduction on their taxes. If the contributed property’s valuation for tax purposes is high enough, the property owner can come out way ahead.