The Sweet Spot in the Tax Code

Welcome to CRE Broker Playbook!

The days are getting shorter. My kids start school next week, the pool in our neighborhood (much to my chagrin) is closing at 7 PM every night and in two Saturdays, there will be a meaningful college football game.

The end of the year will be here before you know it.

You are a real estate broker and not only are 2024 deadlines approaching, but any meaningful planning for 2025 needs to be in process now.

Your business tax return is due in under 40 days.

Your personal tax return is due 30 days after that.

Retirement contributions are due as well.

Are you going to get hit with an unexpected tax bill when your CPA files?

I hope not. But what about the 2025 tax year?

If you want to reduce your taxes in a meaningful way, you're running out of time.

100% Bonus Depreciation is back after being phased down—but only if you can deploy your capital before December 31st. Have you made quarterly tax payments? Do you have the cash in your bank account to pay your 2025 taxes by the end of the year?

Do you even know what you will owe?

Here's what most brokers know but don't prioritize:

As a commercial real estate broker, you occupy a unique position in the tax code. You are:

1. A business owner (Deductible business expenses and larger 401(k) contributions)

2. REPS qualified (Real Estate Professional Status aka bonus depreciation)

3. Non-SSTB (Not a Specified Service Trade or Business – S Corp preserves 20% Qualified Business Income Deduction)

This is the sweet spot in the tax code.

While other high earners get phased out of deductions and face additional taxes, you have access to strategies that can save you significant money annually.

But only if you plan ahead.

The difference between the tax bills of two similar brokers isn't luck. It's planning.

Don’t leave money on the table

If you're making good money but still getting surprised by tax bills, or if you're not sure whether you're optimizing your situation, we should talk.

We specialize in helping commercial real estate brokers navigate their unique tax situation. We've saved our clients millions collectively because we understand your business.

Schedule a free 30-minute call and let's see if we can help you keep more of what you earn.

Thanks for reading until the end.

Jake