As a real estate professional, did you realize that you are operating a small business? There are many tax deductions that small business owners overlook – it’s the little things that can add up and save you MONEY!
Here are some ideas for items used for business purposes only:
- Advertising and printing
- Entertainment and gifts, provided they meet IRS criteria (NBA Season Tickets are great for client appreciation).
- Equipment and furnishings: Depreciation on equipment; Home office costs; Office supplies; Software costs; Telephone (cell phones), Internet, television and other communication tools
- Insurance premiums
- Costs of business books, periodicals or newspapers
- Dues or membership costs to professional organizations
- Education costs for self or employees
- Office moving expenses
- Fees and penalties–Relating to CDs, business checking, savings or money-market accounts; Associated with retirement accounts for self and employees; For credit bureaus, Better Business Bureaus, local associations, etc.; Paid to employment agencies
- Interest payments on business loans
- Janitorial, landscaping and maintenance costs
- Losses due to fire, windstorm, hail, flood or other natural disasters; also losses due to theft may be deductible
- Self-employed tax deductions. Individuals can deduct a percentage of their health insurance premiums paid during the year for themselves and their dependents; May deduct one-half of their self-employment tax
- Tax preparation fees as well as accounting, attorney, insurance, consultation fees, etc.
- Travel expenses
- Utilities for business facilities
Now, if you operate your real estate company as a separately entity (you have an EIN number form the IRS), than your business’s tax return deadline is based on its entity type, whether or not you plan on filing an extension, and if there are any weekend or federal holidays in the picture.
The table below details when each type of business entity needs to file 2017 taxes in 2018 (using the calendar year)
Here are the dates that you need to know!
2018 Business Tax Deadlines for 2017 Tax Filing
|Entity Type Tax Deadline||Due Date|
|Original deadline for partnerships (Form 1065) and S Corporations (Form 1120S)||March 15, 2018|
|Original deadline for C Corporations (Form 1120) and individuals (Form 1040)||April 17, 2018|
|Original deadline for exempt organizations (Form 990)||May 15, 2018|
|Final deadline for partnerships and S Corporations (with extension)||September 17, 2018|
|Final deadline for C Corporations and individuals (with extension)||October 15, 2018|
|Final deadline for exempt organizations (with extension)||August 15, 2018|
Typically, the tax return due date for flow-through entities is the fifteenth day of the third month of the company’s fiscal year. So the S Corporation and LLC tax return due date in 2018 will fall on March 15 (for partnerships that follow the calendar year). The extended due date for flow-through taxes will be September 17, 2018.
The tax return due date for individuals and corporations typically falls on the fifteenth day of the fourth month of the company’s fiscal year. For calendar year companies, this date tends to fall on or around Emancipation Day, which can impact the deadline. (Emancipation Day is April 16, but the government recognizes it on a Friday if that day falls on a Saturday and Monday if it falls on a Sunday.) So the corporate and individual tax return date in 2018 will fall on April 17. The extended due date for corporate and individual taxes will be October 15, 2018.
Exempt organizations, such as nonprofits and charities, must file taxes on the fifteenth day of the fifth month of the organization’s fiscal year. The 2018 due date for calendar year nonprofits is May 15. When an exempt organization files for an extension they get three months instead of six months (like other entity types, so the 2018 extended due date for exempt organization taxes is August 15, 2018.