At this point, April 17 may not even be a glimmer in your eye. However, you can still start thinking about your taxes, as it’s never too early to get your finances in order. Taxes for self-employed folks can be a real headache, which is why it’s smart to understand your unique tax situation and prepare for what to expect on Tax Day today. The following are some suggestions for how real estate agents can sufficiently prepare their finances, thereby avoiding tax season panic. 1. Keep all of your paper records in a single place These days, most of your business records are likely electronic. However, you may still have some paper statements lying around, such as your spouse’s W-2, mortgage interest forms and the 1099 from your real estate brokerage. These records should be kept in a single easy-to-access place for quick reference. That way, when it’s time to pay taxes, you don’t have to go searching every drawer in the house for all of your miscellaneous documents...
- Although most of your records are probably online, keep track of any remaining paper documents in one place for easy access.
- Dedicate at least five minutes every week to reviewing your account statements and expenses.
- Set aside a portion of your commission for taxes -- 40 percent is a good ballpark.