Real Estate Agent Tax Guide! | Brett Philips, CPA | Skillshare
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11 Lessons (1h 12m)
    • 1. Introduction

      2:04
    • 2. Entity Selection

      3:22
    • 3. Limited Liability Company

      4:28
    • 4. S-Corporation

      7:16
    • 5. Entity Progression Summary

      1:14
    • 6. Estimated tax payments

      3:39
    • 7. Best Practices

      4:02
    • 8. Tax Deductions

      14:52
    • 9. Non-Deductible Expenses

      5:12
    • 10. Retirement Plans

      22:51
    • 11. It's a Wrap!

      3:26
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About This Class

Filing your taxes can be tricky when you’re self-employed, but we got you covered.  This handy tax guide was designed specifically for realtors to ensure you pay the least amount of tax allowable by law.

As a real estate agent, you are typically considered an independent contractor for federal and state income tax purposes.  Your brokerage will issue you a 1099 at the end of the year with your total compensation which must be reported on your personal tax return (Form 1040). 

Pretty simple right?  Well not exactly.  As an independent contractor, you are treated like you own your own business.  This is great news, because you’re able to deduct all your business expenses that are considered ordinary and necessary, and you only pay income tax on the remaining income.  Although there are many benefits of owning your own business, it significantly complicates your tax situation.  

This tax guide was designed to bring some clarity to your complicated tax situation and ensure you maximize your business deductions.  In order to do this, we will focus on these main topics:

  1. Selecting the right entity structure
  2. Income tax filings and due dates
  3. Understanding self-employment tax
  4. Making estimated tax payments
  5. Business best practices
  6. Maximizing your business expenses
  7. Retirement plan options

As you will see, the key to minimizing your tax liability is to plan ahead, take action, and document…document…document.  

Meet Your Teacher

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Brett Philips, CPA

Master your side hustle, advance your ca

Teacher

Master your side hustle, advance your career, and earn more money.

 

If you’re an aspiring entrepreneur looking to break into a new field, or a current entrepreneur looking to advance your career and increase your compensation, you’re in the right place.

 

My name is Brett Philips, I’m a CPA and an entrepreneur with a love for teaching.

 

Throughout my career as a business consultant and tax professional, I’ve worked with thousands of successful entrepreneurs and business executives in all different industries. I’ve had the opportunity to work with some of the brightest minds and have spent over a decade working with C-level executives or Fortune 500 companies, owners of privately held busin... See full profile

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Business Finance Real Estate

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Transcripts

1. Introduction: Hey there. Welcome to the Realtor Tax Guide. My name is Brad Phillips, and I'll be your instructor for this course. I am a C P. A. With over 15 years of consulting experience dealing primarily with Realtors and other real estate professionals, I own and operate my own C p, a firm here in Dallas, Texas, where we focused primarily on real estate in real estate professionals. So, as you know, filing your taxes can be tricky when you're self employed. But don't worry, we got you covered. This handy tax guide was designed specifically for realtors to ensure that you paid at least amount of tax allowable by law. As a real estate agent, you're typically considered as an independent contractor for federal and state income tax purposes. Your broker will issue you a 10 99 at the end of the year with your total compensation, which must be reported on your personal income tax. Return your form 10 40. Pretty simple, right? Well, not exactly. As an independent contractor, you're treated like you own your own business. This is great news because you're able to deduct any expense your business incurs that are considered ordinary and necessary, and you only pay income tax on the remaining income. Although there are many tax benefits of owning your own business, it's significantly complicates your tax situation. This guide was designed to bring some clarity to your complicated tax situation and ensure that you maximize your business deductions. In order to do this, we will focus on these main topics. The first is going to be selecting the right energy structure. The next is going to be understanding self employment tax and then making estimated tax payments, some business best practices maximizing your business expenses and finally, retirement plan options. As you'll see the key to minimizing your tax liability is too plain ahead. Take action and document document document. Let's get started. 2. Entity Selection: the first section we're gonna tackle is entities selection. So properly structure your business is key to sit in a pure business for long term success . There are many options when picking in the structure, but there is a recommended entity progression as your business grows. This entity progression provides you with all the benefits of having your own business activity in an entity, but also provides you with the most tax advantageous structure. It begins with sole proprietorship. Let's take a look at this one. So proprietorship is the most basic entity structure because it's the default entity structure when you start doing business and you're the only owner. If you're an independent contractor and you have not set up in L. L. C or another at business entity than you're currently operating as a sole proprietorship, there's one main disadvantage of operating as a sole proprietorship, which is there is no legal liability protection. Independent contractors are afforded more freedoms and flexibilities and typical employees . But with that freedom comes additional responsibilities in the eye of the law. If a client ever files lawsuit against you, are alleges misconduct against you in a real estate deal as an independent contractor. With no legal corporate structure set up for your business, you might be held personally liable for damages. This means your personal savings or even your home could be vulnerable to being seized by creditors before we move along and take a look at the next entity structure in the progression. Let's first take a look at the advantages and disadvantages of the sole proprietorship. Let's take a look at some of the advantages of the sole proprietorship. The first avenges that there no start up costs. You simply start operating your business. There are no documents to file with the IRS. You simply do everything under your name and start conducting your business on Day one. The next advantage is the simplicity of the tax filings and ongoing compliance. Your business activity files on your personal form. 10 40 which is reported on Schedule C. There's no additional tax filings that must be completed. It's simple. Well, that sounds great. Why doesn't everyone just do a sole proprietorship? Well, unfortunately, there's some disadvantages. The sole proprietorship. Let's take a look. The largest disadvantage of the sole proprietorship is gonna be the legal liability protection that we just discussed. The sole proprietorship has no legal liability protection, so all of your personal assets are a potential risk. If you fall into some legal troubles. This is a huge disadvantage. The next disadvantage of the sole proprietorship is the difficulty in getting business loans or lines of credit. Since there's no legal distinction between you and your business, some banks or lenders may pass on providing you with the needed liquidity to operate your business. The final disadvantage is the appearance of professionalism. If a business is not incorporated, they just don't seem just sort appear as professional as an agent that has an LLC behind his or her business name. The sole proprietorship is fine when you're getting set up and taking you're exams. But once it's time to sign that first contract land that first client you should be set up in an LLC. Now let's take a look at the most popular business structure, D L L C. 3. Limited Liability Company: the LLC energy structures, one of the most popular because of its simplicity and limited liability protection provided to you the owner. There are four main benefits of having your real estate agent activity in and LSC entity structure owned 100% by you. First, you received limited liability protection as we discussed earlier. This is a huge benefit by protecting your personal assets from litigation exposure. Again. It's recommended that you set up in L C before you take on your first client, particularly for this liability protection, as you may be tempted to wait till you close a few deals before you structure your business . But first, stop and think about this. When are you more likely to make a mistake at the beginning of your career? Or after you're an experienced agent and have some deals under your belt? Obviously, you're much more likely to make a mistake at the beginning of your career, which is why it's so important to set up your LLC on Day one. The second advantage of an LLC is that your new L C is treated as a disregarded entity for federal income tax purposes. This means there no additional tax returns to file for your business, but instead you simply include the activity on your personal tax. Return your form 10 40 on Schedule C. This is no different from a sole proprietorship and that everything is filed on your personal tax return. Makes it easy. Keep in mind that your statement requiring additional tax return to be filed, so check with your state as it's on a state by state basis. Next in l C provides you is significant privacy protection. As you may know, it can be difficult to find the owner of an LLC. Now. You obviously want your clients to know who you are. But when you start to buy investment properties or rental properties, it's good to know that the LSE can protect your identity. Finally, having your own LLC gives you enhanced credibility amongst your competition, telling potential clients that you are a professional business, that you are here to stay if this brings you one additional client than it's worth the investment. So those are some of the benefits of an LLC. Now let's take a look at some of the disadvantages of analysis E. So maybe the most common misconception of LLC's is that you'll have all these additional tax benefits. In reality, there no additional tax benefits of an LLC. Ellis Cesaire disregarded entities federal income tax purposes so they're treated like that don't even exist. There are some ways where we can save taxes with your little sea, but we'll talk about that in the next entity. That's corporation. The other disadvantage of an LLC is that some states charge an annual filing for you to operate your LoC. In California, for example, the annual filing feeds $800 to operate now. Lissy pretty pricey for a simple state filing. So, as you can see, the benefits of an LLC far outweigh the couple of disadvantages. Now let's take a look at how you set up. Your Elsie states have made it increasingly easy to set up your own single member LLC without having a higher and expensive attorney or online company. Simply go to your state secretary of State website and search for single member LLC formation. Each state's a little different, but you should be able to set up your own L. L C in under an hour. If you run into any issues, you can call your secretary of state's office and they should be able to help you fill out the form. What do you have your LoC set up with? Secretary of State? It's time to get your employer identification number with the Internal Revenue Service. This could be done The Irises website in about five minutes. Simply Google i. R S E I N number and the site will pop up. It's easy to find. Just make sure that it's a dot gov website soniya and acts like the Social Security number for your business. You provide this number to your broker using a tax form W nine who will in turn begin to issue checks in your businesses name instead of your name at the end of the year. Your broker rule issue You have form 10 99 miscellaneous to your newly formed L L C. With your total income for the year listed online. Seven Non employee compensation and that's it. Setting up your LoC is very simple process and could normally be done in under an hour. Now let's take a look at the S Corporation 4. S-Corporation: Now, let's take a look at the final step and properly forming your business entity, the s Corporation or escort for short. The escort is an election made by your LLC to have your entity conformed to the AES Corporation Rules and regulations. So what s corporation is not just a entity type? As much of this is an election made by your business to be tax as An s corporation escorts air similar to LLC's and that they are flow through entities. Um, but they do have their own set of rules and regulations and make these entities unique. There are a few major disadvantages and advantages to the AES corporation status. Um, so let's start by taking a look at some of the major advantages of the S Corporation. So the main advantage of the S corporation is the savings on self employment tax. So s corporations are different and that you become an employee of their company and the earnings of your business in excess of your salary are treated as investment income and are not subject self employment tax. Let's take a closer look at how this works. So the main advantage of the s Corporation status is a saving on self employment tax. So as an S corporation, you're required to pay yourself a salary, which is considered reasonable compensation by the IRS standards. But any income in excess of those wages is not subject to self employment tax. So let's take a look at an example. So Carried is a successful realtor in an affluent area, and she closed 10 transactions in 2019 with total compensation of $125,000. She had total expenses of $12,500. Make it her net income $112.12,500 dollars. So with the standard typical LLC, Susan would pay self employment tax of $17,000.213 dollars. Um, plus you, in addition, Teoh self employment tax. She would also pay federal and state income tax. So, assuming you know, 20% effective tax rate, um, minus her deductions, you'd end up paying around $11,100 in federal income tax. So it's a total tax liability of $28,313 or about 25% effective tax rate. So under the S corporation status Susan would pay herself a salary of $50,000 for which she pays $7650 of self employment tax. So the salary is still civic self employment tax. But the main benefit is her earnings in excess of that of that salary is not something to self employment tax. So she had the same federal and state tax liability as the LLC, which would be 11,100. So we're total tax liability comes to $18,750. So the tax savings of making the S election over the LLC is $9563. Not bad. So, as you can see from this example, Karen Onley paid self employment tax on her wages of $50,000 the amount in excess of her wages, which is $62,500. She does not pay self employment tax on those earnings. So with this tax savings comes some additional complexities, so paying wages and running payroll could be complicated, and it's recommended that you hire apparel company to process your payroll to ensure that you're in compliance with the complex payroll tax filings Additionally, you need to, um as soon as you becoming an s corporation, you're required to file a separate tax return. It's a form 11. 20 s. It's fairly, fairly simple. Um, but you will have to encourage two additional fees Teoh to file that tax return. So as you can see, there are some additional complexities to an s corporation. What? The tax savings could be significant, but she saved almost $10,000. Um, by making that election in 2019. So the next advantage of an s corporation is the limited liability protection on your personal assets. So just like the l l C. Um, if the entity was to get to some litigation issues, your personal assets cannot be taken by creditors. You should you be sued for business activities. The next benefit or advantage of the S corporation is the flow through taxation. So against similar to an LLC, the S corporations of flow through business, the S corporation does file a separate tax return again that forms 11. 20 s, and it issues what's called a schedule k one to its shareholders, which summarizes the income and deductions which are then reported on your personal tax return your personal form 10. 40. Now, let's take a look at some of the disadvantages of the s corporation. So first, they're gonna be a little more expensive to operate. So you will need to file a separate tax return for the business and file payroll taxes for the business, which can cost a couple $1000 a year, depending on on who you used to prepare those forms. Um, typically, the self employment tax savings air so significant by electing the S corporation status you know easily makes up for these additional fees, but it's something to keep in mind. So the next disadvantage of the S corporation is that you must pay owner operators reasonable compensation. Now, the iris does not define reasonable compensation, but a good rule of thumb is around 50% of your net income pain. Payroll includes making I R s payroll tax payments, monthly filing tax forms quarterly and keeping up with all the the annual tax forms as well . So again, on highly recommend that you hire apparel company to keep these filings in good good standing. As you know, the iris really goes after you and, um, the the penalties for filing these forms incorrectly are fairly significant. The final disadvantage of the S Corp is the additional filing of federal and state tax returns for your business since includes the annual business tax return of Form 11 20 s, plus the payroll tax forms need to be followed quarterly annually. Again, it's a good idea to outsource these jobs. Um, I would definitely recommend talking with a c p A. To file the business tax returns that could make sure they maximize your expenses, which will minimize your tax expense. So, as you can see, there's a number of of advantages and disadvantages of the S corporation status. So let's take a quick summary of the entity progression once again before we Ah, for we move on. 5. Entity Progression Summary: So there you have it. Let's somewhere is the progression of the entity status for roasted agents. So you start off with the pro sole proprietorship. This is fine when you're studying for your license and you haven't yet picked up your first client. But as soon as you're ready to pick up that first client, let's roll you into L L C So you would set up that L l c with the secretary of State, whichever state you're operating in and, um, and get get going so you can start picking up clients through that once you think you're gonna have net income exceeding $50,000 it's in time to make that s election and become an s corporation. You have to begin to payers off salary and file a separate tax return for that. That s Corp. Um, but again, it will save you significant tax savings in self employment tax. So there you have it. Soap Ridership LLC s corporation. Um, let us know if you have any questions. Was fairly, fairly straightforward, but that's the entity progression. And that's that's the way we recommend you move forward with your business 6. Estimated tax payments: All right. Now, let's take a look at estimated tax payments. So employees have money withheld from your paychecks by their employers to pay their personal income taxes as well as your self employment tax. The money is taken out from their wages and sent to the I. R s before the employees even sees it. Then, with the employee files, their annual tax returns at the end of the year, they simply fill out the forms, and hopefully they get a few bucks back from Uncle Sam. Self employed taxpayers, on the other hand, are completely responsible for paying their own taxes. So unless you are legally considered employees in your real estate brokerage, which is exceedingly rare, your broker will not withhold money from your commission checks. Instead, you need to send in quarterly tax payments to the I. R. S. These payments are just estimates of your tax do, and we'll still be required to be trude up at the end of the year with your annual tax filing. So the IRS allows for two different methods to make in calculate your estimated tax payments. The first method is pay 100% of your prior years tax liability. Um, so if your adjusted gross income for the year is over $150,000 then you are required to pay in 100 10% of your prior years tax liability. So this is probably the simplest method. You simply look at your prior years. Tax on on your prayers. Tax return, um, divided by divided by four. And make sure you have at least that amount paid in for each quarter. The second option is to pay 90% of your actual tax liability. So what this method? You have to actually calculate how much tax you owe in that quarter and then make that payment, um, each quarter. So Option two is a little more complicated as it requires a calculation for each quarter. Typically, we recommend you go with option one just to be safe and always, always keep in. Keep that separate tax account loaded up with funds just in case. At the end of the year, you still you still have ah remaining liability so they require. The Irish requires that you make estimated tax payments at least quarterly. If you expect to pay more than $1000 in taxes for the year. Hopefully, that's that's all of you. So you should get in the habit of paying quarterly from the beginning of your real estate career. So here the quarterly due dates that you should have on your calendar so you're Q one payment is due April 15th. So this is for taxes due, um, for income earned between January 1st and March 31st. So for Q one, it's 2 April 15th. So the following month, um, of the quarter close, which is gonna be the same for every quarter. But let's just go through real quick. June 15th is the second so for Q tubes, June 15th says for income earned between April 1st and May 31st Que three is due September 15th and this is for income earned between June 1st and August 31st. Q four is due January 15th of the following year, and this is for income earned between September 1st and December 31st. So, again, as you can see, it's it's the 15th of the following month of the end of the quarter. So just keep those in mind Marshals on your calendars. You know exactly when to pay in your quarterly estimated tax payments 7. Best Practices: Now let's look at some of the best practices you should incorporate into your business. As a professional real estate agent, your days are full of client meetings, reviewing new listings and, of course, developing leads for your new business. Your time is valuable, so staying on top of your tax deductions is likely far down. Your list of priorities tracking your expenses and keeping up with constantly changing tax laws could be tedious and time consuming before we dive into each specific business tax deduction. Let's take a look at the six best practices for operating your own business to ensure that you don't overlook any business deductions. The first is gonna be have a separate bank account. So the easiest way to separate your business expenses from your personal activity is to have a completely separate bank account and credit card if you if you're so inclined for your business activity. So if you have an LLC or s, corporations is actually requirement of those of those entity types to ensure that you did not pierce the corporate veil and ah allow creditors to go after your personal assets, so you always want to keep keep your business activity and your personal activity completely separate. The next best practice is gonna have it be. Just have a separate tax account. So it's recommended that you set up a separate bank account to hold your tax liability until it's time to make your quarterly estimated tax payments. When you're first starting out, I would recommend withholding 30%. Um is 30% is a good percentage to put aside from each check just to ensure you don't you don't under withhold or not have enough money? Would tax tax day rolls around? So once you filed your taxes and know your effective tax rate, you can adjust this percentage and then just hold back that effective tax rate. The next best practices gonna be technology. So there were many websites and APS you can use to automate your business expenses. Throughout this guy. There will be several recommendations for ways to use technologies to expedite and simplify tracking your business deductions. Next, best best practices gonna be hiring experts. So the tax laws are constantly changing their extremely complicated, which is why it's very important to find a C p. A that works with real estate professionals and understands the complexities. Let's your business faces. So I would highly recommend hiring a c p A. To make sure that you maximize your expenses and don't over pay in tax the next best practices. Going to find a mentor so you could shave years and mistakes and complications by finding a mentor that is willing to teach you the tricks and trades of the business. It's highly recommended that you find somebody that you could work with. Not only will they enjoy the process, but you can learn. Learn a ton, Um, by working with a mentor the final best practices knowing your numbers, so keep it updated. Financials for your business is important to understand where you have been and where you're going, so you want to grow 20% this year. That's a great goal, but how can you measure your performance without knowing your numbers? QuickBooks Online is a great resource for self employed business owners to tracking create financial statements, I would highly recommend you set up a new account online. You can link your bank accounts and easily pull in your information and, um, print reports and know exactly how much income and expenses you have for the year. So these were some of the best practices to ensure that you not only properly tracking and recording all of your expenses, but it will keep you able to, um, make educated business decisions as your business grows. 8. Tax Deductions: All right, guys, this is the meat of the course. Um, this is where we're going to dive into the tax deductions. So I'm sure it's no news to you that income taxes air complicated. So the best way to minimize your tax liability at the end of the year is to plan ahead and diligently document your deductions If you're not sure if something is tax deductible, Um, it's always a good good idea to include the expense in your deductions and ask your c p a about it at at the end of the year. Um, so this section we're gonna guide you through each, um, expense. That's common for realtors. Um, the 1st 1 we're gonna start with his advertising expense. So this would include flyers, yard signs, banners, mailers, online advertisements, website, website maintenance. Ah, online, lee generations, social media photographers, print ads. Pretty much anything you put your name on, um, is going to be tax deductible. It's gonna be advertising expense. Advertising is 100% tax deductible. Um, and and it's ah, it's a great deduction. So make sure your anything you put your name on it, you categorize it to advertising expense. next is gonna be automobile expense. This one's a little bit trickier, so it's typically one of the largest tax deductions for real estate agents. But automobile expenses is non deduction that should be taken lightly. The IRS allows independent contractors to different methods for calculating their automobile expense. Um, but the key to maximizing your animal automobile expenses will be documentation, so documentations keep pretty much with every tax deduction, but it, especially with automobile expense. The first method that the IRS allows you to use is called the actual expense method. So to use the actual expense myth that you must determine what it actually cost to operate your vehicle, um, before the the entire year. So this would include gas, oil repairs, tires, insurance, registration fees, licences on depreciation on the automobile. So what you do is you need to first determine what percentage is business use. So if you're using the car, you know, 100% that's easy to use. We'll deduct the full amount. If you're only using this car, you know, 50% for business, then we need to run through. The calculation. Were able to deduct 50% um, of the actual actual expense. So the second option, which is probably more popular option, is a standard mileage rate method. So to use this method, you track your business mileage throughout the year that multiply the total business mileage against the I. R s standard mileage rate for 2019. The standard military. It's 58 cents a mile. It's much. It's much easier. It's much more, much more. It's It's just much less to complicate, Um, and there's actually an app for tracking, helping you track these these business mileage. So it's called Mile I. Q. It's a mileage tracker. It automatically traction records your miles as you drive for business. And, um, you just swipe left or right if it's a business trip or a personal trip. So it makes it really simple, and it's a great way to make sure you're maximizing your mileage. So the next deduction is going to be bank charges, so bank charges are deductibles. Business expenses, including your monthly bank fees. You're pretty checks, overdraft fees, um, sometimes big charges and you're late. Payment penalties are confused with non deductible penalties, so non deductible penalties air penalties from government agencies for violating a law so say say like, a speeding ticket would be not deductible. Um, but just regular bank thes bank penalties for over Jeff ease those air all totally deductible. So don't make make sure that you go include those is deductible expenses because you don't get those confused with with the federal government penalties, the next deductions gonna be commissions. So commissions are what you pay other agents or other assistance or people working for you . Um, if you pay somebody more than $600 in the calendar year, you need to request a copy of their W nine and then issue them a 10 99 miscellaneous at the end of the year. So those are commissions and those air also 100% tax deductible. All right, Next up, we got computers and equipment jobs. This would include your laptops, your desktops, your ipads, your cell phones, printers, um, fax machines. If you're still using a fax machine, um, so the i. R. S only to consider when it comes to equipment that you purchase for your business. The IRS recently implemented a new to minimus rule which states that if it's under $2500 you can just go ahead and expense that item. You don't have to capitalize it, depreciate it. You just go ahead. You could take that deduction if it's under $2500 the next deductions going to continuing education. So this would include courses like the one you're taking right now, um, continuing education coaching seminars, motivational speakers, those air all 100% tax deductible. Next ups can be legal and professional fees, so real estate agents could deduct your legal and professional fees. Azzam's They're considered ordinary and necessary part of your business, so this would include your attorney's fees, accounting fees, bookkeeping fees. Ah, CP A fees. Consulting fees. Does it all go into legal professional? There are 100% tax deductible. The next would be health insurance, So health insurance is a little bit different, is deductible. It's 100% tax deductible, but if you're self employed, your pain, your own health insurance premiums out of pocket. Those air actually reported on a different section of your tax. Returns were reported on page one of your Ted Ford is really going above the line deduction . So although there are 100% tax deductible they're actually just reported on a different different line of your tax return. All right, The next one is the infamous home office deduction. So many people think that if you deduct your home office, you're automatically get audited. It's a big red flag, Um, and that's simply not true. If you take a reasonable home office deduction, it doesn't increase your odds at all of being audited If you put on your crazy numbers and say that that you're spending thousands and thousands of dollars in your home office or you or you put on, you know, a ton off depreciation for building on, uh, in addition to your home and that's your home office and tried to deduct that, sure, you know, those are very aggressive positions. But if you just take a standard home office deduction, um, in my my professional opinion, I don't think it increases your odds of being audited at all. So let's take a look at the two methods for calculating your home office deduction. So there's the simplified method, which is calculated by multiplying your dedicated home office square footage area. It's capped out of 300 square feet by $5 so that's a maximum deduction you could take is going to be $1500. So if you have 100 square feet home office, you can deduct $500. And this is probably the most conservative approach when calculating home office deduction . It's simple it. I don't think this increases your odds at all of being audited. This is a This is a very reasonable approach to deduct in the Home Office expense. The second method is where you can get a little more aggressive. Um, this is a full calculation of your home office expenses. So to begin this calculation, you compute your home office usage percentage by taking your dedicated home office square footage divided by your total home square footage. Next, you multiply your your shared home expenses, which would be, um, you know, rent mortgage interest, property taxes, insurance, H O, a. Dues cleaning, maintenance, utilities, Internet, telephone security, any any expense that is for the whole home. And you multiply that percentage times those expenses and then you deduct that amount. So you also have to remember if you're taking mortgage interest in property taxes over on your itemized deductions, you can't double dips. You can't take that deduction on your home office and on your schedule. A. So if you already deducted those on schedule A. You may want to leave those off of your home office calculation or, you know, just run the numbers and see which one, um, gives you the gives you the better deduction. Okay, The next deduction is gonna be, um, MLS listing fees. So if if you're paying these fees at a pocket, of course they're gonna be deductible Pretty much any fee that you pay, Um, that's related to your business. That's at a pocket. That's for the business. Those are all going to be tax deductible. So MLS fees, which would certainly be tax deductible. Next is gonna be office supplies. So if you purchase anything from from from paper to printer ink to paper clips to, you know, any office supplies that you purchase staplers, you whatever you need, those were all going to be 100% deductible. Um, So go ahead and jump on Amazon and go to town. Those will be totally tax deductible. All right. Next we got open house expenses, so these are always fun to see what people are are doing in their open houses. Agents have really been stepping it up for the past few years and going all out in their open houses to really bring everybody in. So anything from order viz to food to music. Um, you know, drinks, anything that you bring in is going to be is gonna be 100% tax deductible. So, um, these are considered meals and entertainment as long as it's open to the public and you're bringing everybody in to show the property. Those are all considered 100% tax deductible. So there's no limitation on those like there is on when you go out to eat with somebody, which would be would be limited to 50%. Um, open house expenses are are are open so you can go ahead, deduct those, um, 100%. Next is gonna be parking and tolls. So these air, in addition to the regular automobile expenses. So if you have to pay to park somewhere, or if you have to pay to driving on tolls. I live in Dallas and there's almost every rules. Every road is a toll road. So if you've to pay for those. Those are, of course, tax deductible as well. Those air, in addition to if you take the standard mileage or if you took calculating actual auto expenses. These are in addition to those expenses, the next deductions going posters and shipping. So whether you're you're sending out mailing and advertising or if your courier currying some documents that need to be signed, all posted shipping all these expenses, courier expenses, everything is gonna be 100% tax deductible. There's no reason to limit those and just want to go ahead and take that full deduction. Next up, we're gonna have professional fees and dues. So these air association dues Chamber of Commerce dues license fees, those air 100% tax deductible. Um, next, we got rental expenses and utilities. So your rent expense for a dedicated home offers or not a home office, but a dedicated office space. So if you have, you know, space, an office building or a strip mall that's gonna be 100% tax deductible. In addition to like, a coworking space, like a wee works or something like that, Um, those are all going to be 100% tax deductible as well. A songs. They're used exclusively for business. Um, additionally, any utilities expenses, any upkeep or renovations of the building, those will be tax deductible as well. All right. Retirement plans were up next, so we're gonna dive really deep into retirement plans later on this course. But I just want to let you know that these are going to be tax deductible. So whether you're doing, you know, SEPA simple or solo 41 k Well, we'll go really deep into each one of those, Um, those are all going to be 100% tax deductible. Um, whether you're an employee or whether you're it's all self employed under, like in that will see the retirement plan contributions, they're all gonna be deductible. Next. We have software costs. So, um, anything from APS? Too expensive software programs that you have to use for your business. Um, you know, lead generation software is accounting Softwares. You may be using QuickBooks CRM software. You know, mileage tracker. Anything like that is gonna be 100% tax deductible. All right, the final two tax deductions, they're going to go over telephone expense. Um, this includes your cell phone, your office phone, fax. Um, those will all be tax deductible. Technically, if you're using your cellphone for business and personal, you should only deduct your business portion of your cell phone, Um, the next expenses going to travel. So if you're going to a conference or if you're going to meet a client, maybe someone that lives at a state or, you know, maybe out in the country or something, any airfare, car rentals, hotels, taking uber somewhere those that all totally be 100% tax deductible again, the meals would be 50% tax deductible, but everything else is gonna be 100%. Um, so, like conferences, all the travel to go to conferences, they're gonna be 100% tax deductible. 9. Non-Deductible Expenses: So based on that long list of expenses, it kind of it kind of appears you can deduct just about anything, right? So you know, obviously that that's not true. There's a ton of of, um, limitations to the amount of deductions you can take as far as you know, what deductions you're allowed on, what you're not allowed. So let's go ahead and take a look at some of the non deductible expenses. Um, you know, before we dive into these, just keep in mind that if it's a personal expense, if it's for personal use and there's really not a business purpose to the expense, it's obviously going to be a personal expense and not not a business tax deductible expense . But let's take a look at a couple items that the IRS specifically identifies as limited either limitations or or non deductible 100%. So the 1st 1 is gonna be business meals. So as we discussed, we've got into this a few times. But, um, whether you're meeting with clients, potential clients, business associates, as long as you're talking business and there's a business purpose to the meeting, those meals are gonna be 50% tax deductible is includes meals, injuring. So if you haven't cocktails, that's fine. That's gonna be 50% as well. Next is going to clothing. So, unfortunately, the iris is very specific rules on clothing. So Well, you know, you may want to dress to impress and wear a nice suit everywhere, or or Ah, nice dress. Unfortunately, the IRS feels like those. They're gonna be personal personal use, So if you can use it outside of the office, um, it's going to be it's gonna be a non deductible expense. So pretty much everything you buy clothing wise is gonna be nondeductible. Um, the only things that are deductible would be like scrubs for, like, nurses and things like that. Things that are very specific to an industry that you really wouldn't want to wear out to dinner or out in public. So, um, I get asked the question about what if I just write my name on my shirt? Does that Does that make the whole shirt tax deductible? Unfortunately, it doesn't the, um, three shirts not deductible, but the but the stitching to put the cost to put the logo on the shirt would be tax deductible. Is advertising expense. All right, next up, we got club. Do so for a long time, clubs expenses were 100% tax deductible. So golf memberships and everything like that we're all free game. But the iris changed those rules a while ago. And so now, club dues, Um, even fitness clubs, social clubs, country clubs. They're all non deductible. So those air all personal expenses and their 100% non deductible for business. Um, one little loophole. I don't nothing. Everything. It's a loophole. But if you're if you're eating meals, it's a your country club or your fitness club. Those meals would still be 50% tax deductible, but the actual club dues are going to be non deductible expenses. Next, we have entertainment expense. This is a new rule change in 2018 that the IRS made entertainment expense no longer tax deductible. So this would include golf outings, baseball games, football games, tickets to sporting events or musicals or anything any entertainment value. They're no longer tax deductibles. Was there 100% non deductible items? Even if you give them, um, you give them out to clients or whatever, they're still still gonna be a non deductible item. All right, the last couple of non deductible expenses, the 1st 1 is gonna be gifts. So, um, if you're giving a gift to a client or yeah, someone for maybe closing a deal or referring referring at somebody to you, um, it's totally fine to do. There's no there's no problem with it, but the gift is going to be limited to $25 per client per year. Um, this one, including gift cards or appliances or, you know, fruit baskets or whatever you do it closed to to give your clients, you know, a little gift. You just got to keep in mind this. Give me limited $25 per client per year. Um, you know, you could always add a logo to whatever the gift is going to be and, you know, potentially reclassify a portion of that to advertising expenses. That's it was a good idea to kind of get that. Get that number a little bit higher. Thea Next nondeductible item is gonna be political contributions, so he's 100% non deductible. I know, um, in my office, I try not to talk about politics at all, and clients coming all the time, and they're very opinionated one way or another. And I just I just thought in my head and keep my keep my opinion to myself. I I had the recommend Everybody in business do that. Um, so but but political contributions, those air those were not deductible on, um, as a business expense. So if you do pay that through your business, just keep in mind it's gonna be a non deductible expense. 10. Retirement Plans: all right. Now let's take a look at retirement accounts. So as a self employed independent contractor, you don't have the typical for a one K plan offered by most employers. You are responsible for setting up and funding your own retirement plan. In this section will take a look at the most popular plans and the pros and cons of each plan to determine what will best suit your situation before setting up on funding a retirement plan. It's important to understand your goals. Where are you now and how much money do you need in retirement? We always recommend speaking with a financial advisor before setting up a plan to ensure that you're saving enough and you have a secure plan for the future. Nor the first question that always comes up once we start talking about retirement plans, is, is how much you're gonna need in retirement. How much money do I need to say? What is my number that I need to to hit to save for retirement? And you know, that's a difficult question, and the answer is always. It depends. So are you in good health? Do you have ah, mortgage or any significant debt that needs to be paid off. Um, are you a thrifty person? And can you live within your means or you big spender and high roller? You know, these were all condemn a huge impacts on how much money you need to you need to save for retirement so your your lifestyle choices are going to impact your target numbers significantly. So giving, Given all the variables and uncertainty regarding how much someone needs to save or have invested in order to retire comfortably, it makes sense to have to be at least familiar with a few of the rules of thumb. When it comes to how much money do we need to have saved up? Let's take a look at three of these rules of thumb, so the first is gonna be the 12 times rule. So most financial advisors recommend saving between 12 times and 15 times your annual salary, and you want to have that saved by the time you're 67 years old. So this will allow you to keep the same lifestyle in retirement that you've come accustomed to buy. Working eso. Let's run a couple of numbers real quick. Just you kind of have an example. So if you're making $100,000 a year, you'll need, you know, 1.2 to 1.5 million in retirement. If you're making $80,000 a year, you'll need somewhere between 960,000 and 1.2 million. So these were obviously just rough numbers, and you're like like I said, the beginning you're spending and your lifestyle choices aren't going to greatly impact that number. So if you're like I said, if you're a big spender, you know you're gonna wanna be somewhere up closer to 15 times your annual salary. And if you're pretty thrifty and your conservative 12 times can can probably probably do the job, the next rule of thumb is gonna be the 4% rule. So this estimates that you could take 4% withdraw from your financial savings balance annually and increase the amount with inflation for each year. So if you have $500,000 in your accounts, you'd be able to spend $20,000 in the first year, So it's important to consider your monthly spending when estimating how much you'll need in retirement. Consider your big expenses today and whether those will be still be expenses in retirement . So example would be like your mortgage interest or car payments. So under the 4% rule, you need to save $300,000 for every $1000 monthly income you'll want. So if you need to save, you know, save $5000 a month to live off of in retirement, then you'll need to have around $1.5 million in savings. The next rule of thumb is gonna be the income replacement method. So conventional wisdom says you need between 70 and 80% of your current income to live in retirement, um, to attain the same lifestyle that similar to today's. So, you know, I've met people who would be perfectly happy at 40 to 50% of their current income because, well, if they've paid off their mortgage, they've saved aggressively. They live below their means for decades, and they don't plan on spending a whole lot in retirement. I've been others who have plans to see the world in retirement and and you know they're not not big savers, so you know, there's kind of two different classes of people and you seem to kind of figure out where you are and where you're gonna be in retirement, how much money and what things you want to do in retirement. So these are all things to consider these three great kind of rules to go by and give him each of thought and kind of run your numbers through him. And then I would definitely recommend talking to a financial advisor to kind of put all these numbers down. Look at what your current situation is. Look at your age and kind of come up with a plan for yourself. So before you do that, let's take a look at the three different retirement plans that we recommend for entrepreneurs and for Realtors that they're independent contractors. So retirement plans. So there are a ton of different options on the market today, many of which are designed for large companies or employers with multiple employees. Um, they often have much lower contribution limits and are expensive to operate, but fortunately, there some retirement plans designed specifically for independent contractors and self employed individuals. So in this guy, we're gonna take examine, you know, three of these retirement plans that allow for maximum contribution allowances in a relatively inexpensive to operate. All three of these plans are tax deductible, so the funds placed in the account will lower your taxable income in the current year, and they grow tax deferred until your retirement age. Once you turned 70.5, you'll be able to take out this money some. Some require minimum distributions required minimum distributions, and uhm, at that time it's taxable income to you. So you get to detect. Take the deduction. Now it's tax deductible in tax deferred as it grows. Then once you take the money out its taxable income, so the 1st 1 and take a look at it's going to be a simple, simplified employee pension or the CEP IRA. Let's take a look at this one, so we start with this EP because it's probably the most popular retirement plan option for single member businesses and self employed individuals. Um, a Sepp stands for a simplified employee pension, Ira Um, and it's a type of traditional IRA that allows independent contractors to save up to $56,000 a year towards retirement. So the maximum contribution amounts $56,000 a year, which is which is pretty incredible, that you could save that much in one year. That's obviously at this. That's the max you don't You're not required to put in that much every year. But that's the maximum contribution that you can make. Um, so that the Septus typically the best option for self employed independent contractors who don't have any employees because it's it's flexible, and it's got these huge contribution limits. So generally set fire is repressed for self employed individual contractors with no employees. So if you have employees used to qualified to participate in the plan, Iris requires that you contribute on their behalf, and the contributions must be an equal percentage of their compasses. Compensation to your So this could get really expensive if you're if you have any employees and you're wanting to contribute a large percentage of your taxable and come into the plan , so save IRA contributions are they are tax deductible. The investment grows tax deferred until retirement, when distributions are then taxed as income. Let's take a look at some of the pros and cons of the CEP IRA. All right. First, let's start with some of the advantages so the first advantages give me the high contribution limit, as we discussed in $56,000 a year to put into retirement is a huge number on, and you could really accumulate some retirement savings if you put together extreme together a few of those years, Um, that's a That's a huge advantage of the CEP IRA. The next event is gonna be It's very inexpensive, so thes plans you can set him up through any of the brokerages, their Vanguard fidelity. They all offer Sepp IRAs really easy to set up. The fees are very low, and they give you a bunch of investment options. Um, that actually be the tax savings. Obviously, these are tax deductible when you make the contribution, which is a huge advantage in the current year. Obviously, if you're able to contribute up to $56,000 you must have a huge amount of taxable income. So being able to to say that and you know, pay that when you're in retirement and probably much lower tax bracket is very tax beneficial. The next is giving their very flexible. So there's no requirements to to fund the CEP in a current year. Um, so if you have a bad year and you can't make a contribution, you know you can always skip a year or two, and there's no penalties. There's no issues with that at all. So sapphire is a great retirement plan. It's it's, you know, a huge contribution limits. It's not very expensive to operate, and it's super flexible on bears. Lots of tax havens. So great plans. Let's take a look at some of the disadvantages. There's not many, but we'll take a look at some of disadvantages of a separate area. All right, so some of the disadvantages of a Sepp is that first of all, there's no catch up contributions. So with some of these plans, if you're over 50 they'll allow for another $5000 or something for you to contribute to the plan just to kind of boost up that contribution. Max. While you know, since you're nearing retirement age, the next is gonna be required minimum distributions, so steps do have a requirement is required minimum distribution that also calm our MD's, um, and what you hit 70.5 year acquired, you have to run a calculation based upon your total income, your total asset values in your retirement accounts and and then it kicks off a number based on your age of how much you're required to take out a year so that there's certain things you can do to get around some of this you can actually contribute. Make a terrible contribution with some of your required minimum distributions if you don't need the income and you wanna you wanna take the deduction that way. Um, you know there's some things to get around this, but that that is not a great a great asset of the step. I raise the required minimum distributions the next. There's no Roth aversion, so some plans offer a mix of traditional and a Roth SEPs do not do that. So there's only one option. It's it's what the CEP and there's no there's no Roth option next to give me the early withdrawal penalties. So, you know, keep in mind this is a retirement plan. Virus does not want you taking these this money out early. Um, so if you do, if you take it out before age 59 a half, there is a 10% penalty for early withdrawal. So not only is the distribution gonna be taxable income, but it's also gonna be hit with a 10% penalty, so it could be pretty costly if you're taking money out of a step Ira. All right, The next retirement plan we're gonna look at it's gonna be a simple IRA. So these are great for smaller companies who have do have employees. So if you're under 100 employees, this is probably the most cost effective retirement plan. Um, if you just have one or two employees, it's still a really good plan because it's very inexpensive to operate. So simple stands for Savings Incentive match plan for employees. So the employers can choose to make either a 2% retirement account contribution for all employees or an optional matching contribution up to 3% of each employee's wages. So employees get contributed maximum of $13,000 annually. That's as a for 2019 so the maximum is increased periodically. To account for inflation, Um, employees over the age of 50 can make an additional ketchup contribution of $3000 bringing the maximum contribution amount to $16,000. If you're over 50 the The appeal of the simple IRAs is that they have minimal paperwork. They're easy to set up. Um, and they're very low cost plans. So when you compare these like a 40 on care or a plan, that's that's a little more cumbersome. They they can be there much less expensive than some of these other plans. So, um, a little interesting thing about the simple IRAs that each employee has their own account, which they own so they can take, um, with them when they exit the company. It's there, it's there, money. Once you make the contributions, it's the funds are, there's and there's no getting it back. So since employee owned, they owned their own accounts, you can't put a vesting schedule like a lot of companies do want, like for a one case. So you get, you know, the company match, say, 50% the first year and then 60% the next year, so they kind of drag it out so that you work there longer. It's just kind of tries to keep the employees incentivized to stay with the company and not and not leave. Now, let's take a look at some of the advantages and disadvantages of the simple plan. Um, first, we'll start with the advantages. So a simple plan is very easy to operate. It's simple. It's straightforward, Um, and there's no top. Heavy testing is no vesting schedules. There's no attacked reporting. It's easy to operate its very low cost, which is great for the employer. The next is it's inexpensive as well. So, um, since there's no, there's no testing, there's no vesting schedules. There's no tax reporting required. They're very expensive to operate and very straightforward. Um, like the CEP, there is obviously tax savings. Any contributions the business makes are going to be tax deductible to the business. Um, the next advantage is that they're great for employees, so employees love. Simple is because there's no vesting schedule. There's no they have to stay with the company for a certain amount time before they get the employer match. Um, the money's There's on day one, and, um, employees really like that. So they're very favorable to employees. Um, and they're they're easy plans to operate, and they're very inexpensive, so they're great for the employers as well. Now let's take a look at some of the disadvantages of the simple. So as we discussed the mandatory instant vesting. So um yeah, this is a huge disadvantage to the simple. A lot of these retirement plans were set up to try to incentivize employees to stay on as and as employees. So you know, not having that that vesting schedule does hurt assumes you make that contribution. Next day, it's it's the employees and they can. They can take it and go. So there's no there's nothing holding them back. There's no there's no clawbacks. The money's there. So the next disadvantages going to the required minimum distributions. So, like the CEP, what's your at age 70.5? They calculate how much you need to take out of the plane is year, and that's that's taxable income to you. Um, the next disadvantage is gonna be the low contribution limits. So these air still much higher than your traditional um, traditional plans. But you know, when you look at some of self employment plans, $13,000 up to 60 $16,000 in a year is pretty low. Uh, plan when you compare to the separate and contribute $56,000 in a year. Um, next is that the early with drop? It was just like this step. If you take money out of this plan early, you're gonna get hit with a 10% penalty. Um, obviously, the iris wants you to keep keep your money in the plans, keep it growing. Um, so you have money in retirement, So let's go on and take a look at the solo for a one K. So as the name would suggest. The solo for a one case are designed for self employed workers and independent contractors with no employees. So these accounts are similar to your traditional for a one K, so a lot of people can can grasp these a little bit better. Um, it's designed specifically for self employed business owners. So with the solo 41 K you can make contributions both the employee and is the employer, maximizing the amount of her time of contributions the business can deduct. Additionally, spouses can have income from your business, and they can make contributions to their accounts as well. So you're able to contribute to 25% of your compensation, which cannot exceed $56,000 for the year for tax year 2019. Um, if you're older than age 50 there's an additional catch up contribution of $6000 which is huge. That brings the total contribution that you can make to $62,000. Um, so a solo 41 K plan is used primarily by single member s corpse, um, who want to maximize their contribution limits. So since it's captain 25% your contribution or compensation, I mean, you think about that when you're looking at your wages and how much you want to contribute to your to your solo plan. A downside of the 41 cases that they're they're expensive to operate, so the administrative costs of maintaining the plans can be can be pretty expensive. Um, you may be required to file additional tax return. It's ah informed 5500. Which is it dependent on the plan Asset values. But, you know, you may be required to file additional tax return, plus this set up costs, and they're just typically more expensive to operate than compared to it like a step pirate . But let's take a look at some of the pros and cons will start with the advantages of the solo for a one K. So, as I just said, one of the biggest advantages of solo. For one case, the high contribution limits similar Teoh A CEP IRA. You contribute $56,000 a year. Um, with the solo, there's an additional $6000 catch up for taxpayers over the age of 50. So that's a that's huge benefit. If you're really trying to load up your retirement accounts, solo is a good option. Additionally, what I really like about the solo planes that they have a loan features. So this allows participants to loan themselves at the $50,000 or 50% of the account value, whichever is less. Um, you know, without any feet. So if you run to some troubles and you've loaded up this solo, you need to get some money out to live off of until you close the next deal. You can still do that $50,000 or 50% of the of the account value. Um, next advantages that there's awesome investment options so solo for one, kids really give you the option to invest in some alternative investment options. Um, they're just they're just really cool their flexibility for investment options. Next is going to be checkbook control. So solo 41 K plan allows you to eliminate the expensive um, delays associated with an with an IRA custodian. So this enables you to act quickly when the right investment opportunity presents itself. You have checkbook control and you go ahead and make that investment. Now let's take a look at some of the disadvantages of the solo 41 K So the first disadvantages goes that they are typically very expensive plans to operate. So they've tried to lower the cost in recent years. But there's still there's still a lot more expensive to operate in your typical Sepp again . Check with your financial advisor and see what see what they recommend. Um, but historically, they have been a little more expensive, so So make sure you beat him upon those fees and see what that suit that's gonna cost you. Um, next, dis avenge of solo for one K, Is this set up fees? Um, not the thieves. I'm sorry that this set up time. They typically take much longer to set up there just a little more complicated, so they require a little more paperwork, not a huge deal, were kind of stretching for some disadvantages of these plans because they're all pretty good. Um ah. Disadvantage. And the third disadvantage is gonna be the tax filing. So, um, as we discuss, if you reach certain thresholds right now, it's $250,000 in asset values. Then you're required to file 5500. It's just another additional tax filing. Additional cost. Um, you know, definitely recommend you hire C p A. To prepare those as they can be quite complicated. The final disadvantage is the aggressive investments. So, you know, this was an advantage of the solo for one cave. It's also a disadvantage. No, you don't want to get in to heavily aggressive of investments in your retirement accounts. These air really assets that you want to protect. You want toe you want put in safe kind of slow growth, um, type investments, you know, wanted to buy leverage positions or do anything crazy inside of your retirement accounts. So that's definitely a disadvantage, as well as as an advantage of the solo for okay, if you're, uh if you're responsible investor than a solo for our case. Great. If you If you tend to get a little too aggressive in your investments, then maybe maybe take a look at it. Step. So those are the three retirement plans that we recommend? Um, they're all they're all really good in their own ways. But again, talk to a financial adviser and see which one they recommend and just go read over all the rules and see which one is best for your business. 11. It's a Wrap!: Wow, guys, we made it through. What a great course. I really hope you enjoyed the course and learn something. I really enjoyed teaching it. I really enjoy this stuff is you could tell it kind of nerd out on it. It's It's a lot of fun. And let's just kind of recap all the items we went over before we get off of this, the first is is gonna be selecting the right entity structure as you remember the entity progression restored off a sole proprietor. You make that l l c um, you set up that l l c. As soon as you're ready to take on that first client and then once you start making good money and you think you're gonna about net were out $50,000 it's time to make that s election and start paying yourself a salary. And you really can save a ton of money in self employment tax. So we went through the entity progression, and then we took a look at self employment tax in a little more detail, as your members have 15 3% self employment tax on the net income of your business. That's in addition to your federal income tax, and that one really hurt. So by properly structuring of bigotry, getting that right entity formation, it'll really save you a ton of money. Um, the next item we got into its estimated tax payments, we took a look at those. The two options the safe harbors and then the 4/4 in which they're do as you remember assumes you close 1/4 on the 15th of the following month is when that payments do. So make sure you mark your calendar and have those payments ready to go. The next thing we looked at was best practices. So setting up a separate bank account for your business, a separate tax account embracing technology, hiring the right people, finding a mentor and understanding your numbers on your financials as the business grows those air all key to having a successful Realtor practice next year. We went through all the different tax deductions way beat up the auto in the home office. Um, we went through all the different tax deductions that you normally see being a real estate professional. Uh, then we beat up some of the non deductible expenses. Remember, like clothing, business meals, club dues, those air, all non deductible items. Um, and then we got into retirement plan accounts. So we took a look at how much you need to or some different ways of how to calculate how much you're gonna need into retirement. And then we took a look at three of the most popular plans for cell phone put individuals. The CEP this simple in the solo for a one K and that's it, guys. So I hope this really was helpful. And I, like I said, I really enjoyed teaching it. Feel free to look me up if you need any tax advice. My name is Brett Phillips and I am a c p. A. I do have a C p, a firm here in Dallas where we help small businesses on specialize in real estate. Do this every day and we love it. So I would love to speak to you. If you have any questions, feel free to give me a call. My number is 9723777078 and I look forward to seeing you in the future. Good luck in all your endeavors, and I hope you have a very successful realtor business. Thanks a lot, and we'll see you next time