How to keep more of your commission (without selling more homes)

Most agents focus on making more money. Very few focus on keeping more of the commission they already earn.

This breakdown is about the second part.

Quick disclaimer: I am not a tax or legal professional. This is for educational purposes only and based on what has worked for us personally. Always confirm with your CPA and or attorney before making changes.

Here are the highest impact tax moves many real estate agents still overlook.

When it’s time to treat your business like a real business

You do not need an entity when you are brand new.

A common benchmark many CPAs use: once you are consistently earning around $40,000 or more per year, it is time to have an entity conversation.

Waiting too long here costs agents thousands.

Why so many agents move to an S Corp

Once income supports it, many agents are advised to use an S Corp.

The advantage:
→ You pay yourself a reasonable salary through payroll
→ You take distributions separately
→ Distributions are not subject to self employment tax

That structure alone can dramatically reduce taxes when done correctly.

Important: Your CPA decides what is reasonable. Not you.

Payroll is easier than it sounds

If you have an S Corp, payroll is required.

With a business bank account and payroll software, this becomes routine. We use Patriot Software. Here’s our discount link.

Pay yourself intentionally
Use distributions correctly
Avoid guessing.

Deductions agents forget to ask about

Deductions change every year. Ask every year.

High impact examples:
Home office percentage applied to utilities and repairs
Partial deduction of remodel costs tied to office space
Education, software, marketing, mileage, technology

If your CPA is not proactively reviewing these, press them.

Paying kids or family members

Yes, this is legitimate when done correctly.

They must actually work
Admin tasks
Mailers
Social media support

This reduces taxable income and can create long term wealth for your family.

The Augusta Rule

With an entity in place, you may be able to rent your home to your business for meetings up to 14 days per year.

Your business pays you
The expense is deductible
The income can be tax free

Documentation and comps matter.

Do not miss the QBI deduction

Your CPA should evaluate eligibility for the Qualified Business Income deduction.

Up to 20%
If it is not being reviewed, ask why.

Bottom line
You do not need every strategy.
You do need the right ones at the right time.

The fastest way to increase take home pay is not always more closings. It’s knowing your tax benefits and applying them.

Make every day count 🚀

Magali

PS: Here is a solid, agent specific deductions checklist worth bookmarking and reviewing with your CPA.

Magali Pattison
Envision VA Home, eXp Realty
Virginia | Nationwide
https://www.envisionvahome.com
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