Do Real Estate Agents Qualify for QBI?

As a real estate professional, you’re always looking for ways to minimize taxes and maximize profit. One common question is: Do real estate agents qualify for QBI? The answer is yes but with important conditions. The Qualified Business Income (QBI) deduction, introduced under the Tax Cuts and Jobs Act, can allow eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income.

At L&Y Tax Advisor, we specialize in helping professionals like real estate agents understand how to take advantage of the QBI deduction and reduce their tax burden legally and efficiently.

Understanding QBI for Real Estate Agents

QBI, or Qualified Business Income, applies to income earned from a qualified trade or business. Here's how it applies to real estate agents:

Requirements for QBI Eligibility

To qualify for the deduction, real estate agents must:

  • Operate as a sole proprietor, LLC, S-corp, or partnership

  • Earn qualified business income (commissions, fees, etc.)

  • Have taxable income below certain thresholds (varies yearly)

  • Not be classified under a "Specified Service Trade or Business" (SSTB) beyond the income threshold

How L&Y Tax Advisor Helps You

Our tax experts at L&Y Tax Advisor help you:

  • Determine if your income qualifies for QBI

  • Structure your business to maximize deductions

  • File accurate tax returns with QBI considerations

  • Plan tax strategies for future growth

We ensure that you remain compliant while taking full advantage of available deductions.

FAQs

Q1: Do real estate agents qualify for QBI?
 A1: Yes, most real estate agents qualify, especially if they operate as independent contractors or own their own businesses.

Q2: What could disqualify a real estate agent from QBI?
 A2: Earning above the IRS income limits or misclassifying income sources may limit or disqualify eligibility.

Q3: Can L&Y Tax Advisor help with QBI deductions?
 A3: Absolutely! We provide personalized tax planning to ensure you qualify and claim the full deduction.

Read More: 

Are Gift Cards Tax Deductible for a Business?

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