As an active Commercial Real Estate Broker I am often asked for guidance on decisions my clients are making. Our clients range from Commercial Tenants and Landlords to Buyers and Sellers of Commercial Real Estate. No matter the transaction we want our clients as educated as possible on legal and tax implications. We are quick to open our rolodex and give contact information for attorneys, CPAs, engineers, architects, bankers etc.
When we find an outstanding vendor we want to make sure our clients and our fellow brokers know them. This month we are pleased to sponsor the Central Texas Commercial Association of Realtors Property Exchange and have Bill Hamilton of W Hamilton & Co present about Tax Code Changes.
With the new tax law that was recently passed, some changes will impact brokers and those who own commercial real estate. For some it is seen as an overall win but leaves others uncertain of how it will benefit and affect our bottom line for business and assets. This deduction is supposed to help with independent owners and freelancers but is unclear on the impact for brokers.
It is important to constantly track your expenses in your firm from business vs. personal expenses to meal expenses and also mileage expenses, which apps can helps with. For you or your clients knowing and making decisions regarding property tax, standard deductions, tax brackets and corporate tax rates is essential. The amounts and percentages of each of these has changed with the new tax law for 2018.
To qualify for SEP, Simplified Employee Pensions, the employer must make contributions for each employee who has:
Attained age 21
Performed services for the employer during at least 3 of the immediately preceding 5 years
Received at least a stated amount in compensation indexed annually for inflation ($600 for 2017).
Whether you are a smaller independent commercial agent or a thriving Commercial Brokerage owner with staff, staying up-to-date with this new tax law will be essential. We must know how this impacts us, our business and our clients.
Bill Hamilton of W. Hamilton & Co., PLLC and DeLea Becker of Beck-Reit Commercial Real Estate.
For more information please see the slides from the CTCAR Presentation March 8th - Please click button below.