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//// Financial · Taxes

Real Estate Agent Tax Calculator

Net commissions after broker split, vehicle deduction method comparison (standard mileage vs actual), RE-specific deductions, and take-home after self-employment tax.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Commissions

Broker retained

$36,000

Your net commissions

$84,000

Split kept

70%

Vehicle Deduction

Deduction method

Standard mileage

$10,050

Actual expenses

$6,400

Real Estate Expenses

Home Office

Qualifies if you have no dedicated brokerage office and use a specific home area exclusively for real estate business.

Tax Settings

Filing status
Net commissions
$84,000
after 30% broker split
Total deductions
$33,390
from Schedule C
Total tax
$10,811
SE: $7,151 + Fed: $3,660
Take-home
$73,189
12.9% effective rate

Full Deduction Breakdown

MLS fees

$2,400

E&O insurance

$800

Desk / office fees (brokerage)

$3,600

NAR / association dues

$1,200

Signage & lockboxes

$1,500

Photography & staging

$3,000

Open house expenses

$1,200

Marketing & advertising

$5,000

CRM & transaction software

$600

License renewal & continuing education

$400

Professional development

$1,000

Vehicle (standard mileage: 15,000 mi × $0.67)

Cannot also deduct depreciation if using standard mileage

$10,050

Home office (10% of home expenses)

Qualifies if no physical broker office — principal place of business

$2,640

Total deductions

$33,390

1

Gross commissions

= $120,000

Total GCI before broker split — reported on 1099-NEC from brokerage

2

Broker split

brokerRetained = grossCommissions × brokerSplitPercent

= $120,000 × 30%

= −$36,000 → net commissions: $84,000

Broker fees are deductible Schedule C expenses — they reduce your net profit

3

Vehicle deduction

standardMileage = miles × $0.67/mile

= 15,000 mi × $0.67

= $10,050

Standard mileage: $10,050 | Actual expenses: $6,400 — you chose the standard mileage (higher) method

4

Total Schedule C deductions

totalDeductions = sum(MLS + E&O + deskFees + vehicle + homeOffice + ...)

= −$33,390

5

Net profit (Schedule C)

netProfit = netCommissions − totalDeductions

= $84,000 − $33,390

= $50,610

6

Self-employment tax

seTax = (netProfit × 0.9235) × 15.3%

= $7,151

IRC §1401

7

Federal income tax + total tax

totalTax = seTax + federalTax + stateTax

= $7,151 + $3,660 + $0

= $10,811 | effective rate: 12.9% on net commissions

Key insight

Real estate agents typically have one of the highest vehicle deductions of any 1099 profession. At 15,000 miles/year, the standard mileage deduction alone reduces net profit by over $10,000.

Use this result in →

🚗Mileage Deduction Calculator💼Self-Employment Tax🏠Home Office Deduction

#ShowYourWork

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