Tax season is upon us again and the National Association of Realtor announced today that for the third straight month in a row existing home sales are up 2.7%. With business increasing our time as real estate agents is valuable. I know you would rather be spending time talking to Buyers and Sellers, but wouldn’t you like to save a few dollars on your taxes. You worked really hard last year to earn the money that you are going to be taxed on. So, take a few minutes to look over the checklist bellow to see if any of the items will help you save a few dollars.

A tax deductions checklist for real estate professionals
By Stephen Fishman
Inman News™

Checklist of deductions

Here’s a checklist of common expenses for real estate agents and brokers that you can use to make sure you don’t miss any deductions this year:

• advertising expenses, including websites, mailing lists, newspaper advertising, fliers, online advertising, postcards, promotional materials, logo clothing, and anything else you pay for to market your real estate business;
• bookkeeping, accounting and legal fees;
• business gifts (up to $25);
• business meals and entertainment (only 50 percent deductible);
• cab fares for business travel;
• car and truck expenses, including business mileage, depreciation, insurance, interest on car loans, lease payments, license plate fees, parking expenses, and tolls;
• cell phones;
• computer software;
• computers;
• desk fees;
• education to maintain or improve required skills (but not courses you take to pass the real estate licensing exam);
• home office expenses (if you qualify);
• insurance, including health insurance, errors and omissions insurance, business liability insurance, and business equipment insurance;
• interest, such as interest for business loans, interest paid on business credit cards;
• Internet access fees;
• map books;
• office equipment (cost may be deducted in one year using bonus depreciation or IRC Section 179);
• office expenses, including rent, cleaning and maintenance, and utilities;
• office supplies;
• postage;
• professional dues and fees — for example, multiple listing service dues and dues paid to the local Chamber of Commerce, Realtor associations, and real estate license renewal fees;
• referral fees and commission rebates;
• retirement plan contributions;
• subscriptions to professional journals;
• real estate franchise fees;
• taxes, including payroll taxes for employees, state and local business taxes;
• telephone service fees;
• travel to business conventions, including transportation, lodging and food;
• wages and benefits paid to employees.

The Board of Registration of Real Estate Brokers and Salespersons has announced a change to the Pre-Licensure requirements for Real Estate Brokers and Salespersons which will go into effect June 1, 2011.

Joseph Autilio, executive director of the Massachusetts Board of Registration of Real Estate Brokers and Salespersons, answers agents’
questions regarding real estate licensing in Massachusetts.

Here is the Board of Registration site regarding this issue.

Here is a pdf handout of the FAQ questions bellow.

Here are some FREQUENTLY ASKED QUESTIONS

AMENDMENT TO PRE-LICENSURE REQUIREMENTS FOR
REAL ESTATE BROKERS AND SALESPERSONS, EFFECTIVE JUNE 1, 2011

(1) What is the effect of the statutory amendment to Massachusetts General Law (MGL) Chapter 112, Section 87SS?

Effective June 1, 2011, the Board shall require the following:

(a) Prior to the salesperson examination, a candidate for a salesperson license shall            complete forty (40) hours of pre-licensure salesperson education.

(b) Prior to the broker examination, a salesperson shall complete forty (40) hours of pre-licensure broker education AND must affiliate with a broker for three (3) years for a broker license.

(2) I am a licensed salesperson. I completed all of the pre-licensure broker education requirements prior to June 1, 2011, must I still affiliate with a broker for three (3) years?

Yes, all broker candidates taking the broker examination on or after June 1, 2011 must complete three (3) years of affiliation with a broker. There are no exceptions and no grandfathering provisions under the statutory amendment.
(3) I am a licensed salesperson. I passed one portion of the broker examination before June 1, 2011 but failed the other section of the broker examination. It is June 1, 2011, will I need to complete three (3) years of affiliation with a broker?

Yes, any candidate testing for the broker examination on or after June 1, 2011 must complete three (3) years of affiliation with a broker. There are no exceptions and no grandfathering provisions under the statutory amendment.
(4) If I passed one portion of the examination (broker or salesperson) but I failed the other section of the examination, will the Board invalidate my passing score on or after June 1, 2011?

No, the Board will not automatically invalidate your passing examination score. If a candidate passes one portion of the examination then the passing score remains valid until the expiration date of the education certification. Please be advised that a licensed salesperson taking the broker examination on or after June 1, 2011 must complete three (3) years of affiliation with a broker.
(5) I failed the examination (broker or salesperson) but my Candidate Handbook’s certification date has yet to expire. It is June 1, 2011. Will I need to take the forty (40) hours of pre-licensure education or take additional pre-licensure education hours?

No. A candidate’s certification date remains valid for the two (2) years following the date on which the pre-licensure education was completed. If a candidate’s certification date has yet to expire a candidate will not be required to take the forty (40) hours of pre-licensure education nor will a candidate be required to take additional pre-licensure education hours to make up the difference in the hours. If the candidate does not pass the examination (broker or salesperson) and the education certification expires then the candidate must comply with the new pre-licensure education requirements.
(6) What if I passed the examination (broker or salesperson) but have not paid for my license prior to June 1, 2011, can I still obtain my license?

Yes but the candidate must pay the license fee within thirty (30) days of being notified that he/she passed the examination (broker or salesperson). If the candidate does not pay the license fee within the specified time period then the candidate must re-take the examination (broker or salesperson) and must pay the prescribed fees. (254 Code of Massachusetts Regulation 2.00(5).
(7) What impact, if any, occurs to the Board’s pre-licensure curriculum?

There is no impact to the Board’s pre-licensure curriculum. The increase in pre-licensure education hours only allows Board approved Real Estate Schools with additional instruction time to teach the pre-licensure course.

I know how hard it can be to keep everything organized. I found this great tool called Thumbs that lets you manage your images. I would not be without this tool. For real estate agents and brokers it works wonders.

Here is the information about the Rapid Pass Study Guide.

There are a number of things that you can do to prepare yourself properly for taking the Real Estate Salesperson Prelicense for the Exam. The most important though is make sure to thoroughly review the material that is covered in the content outline provided by Massachusetts testing company Pearson VUE. Please download the most current version of the outline here.