Your income comes in commission checks, not paychecks. We handle the entity structure, quarterly taxes, and deductions that come with that — so you can focus on your next closing.
Real estate agents and brokers face a tax picture most generalist preparers don't fully understand: 100% commission-based income with no withholding, heavy vehicle and marketing expenses, a self-employment tax bill that catches many agents off guard their first year, and an entity decision that affects every dollar you keep after a closing.
At Mercer Flanagan, we've worked with real estate agents and brokers in Frederick and surrounding counties for over 50 years. We know the deductions specific to your business. We know how commission timing affects your tax bill. And we're here year-round — not just in April.
"The agents who come to us mid-year usually have the same surprise: nobody withheld anything from their commission checks, and now they owe both income tax and self-employment tax on every dollar. That's not a one-time problem — it repeats every year without the right planning."
We work with:
These are the situations we hear about most often from new real estate clients.
Commission checks arrive with nothing withheld for income or self-employment tax. Without quarterly estimated payments, agents can face a large, unexpected bill — plus penalties — the following April.
Many agents earning well above the S-Corp threshold are still filing as a sole proprietor, paying full self-employment tax on every dollar of commission. This is one of the first things we evaluate for every new client.
Showings, listing appointments, and client meetings add up to significant mileage — but the deduction only holds up with consistent, contemporaneous tracking, not an estimate pulled together in March.
Photography, staging, signage, lead generation platforms, and listing site fees are all deductible business expenses that are routinely missed or under-tracked by agents managing their own books.
A slow winter followed by a busy spring closing season makes it easy to under- or overestimate taxes for the year. We adjust your estimates as your actual pipeline plays out.
Without clean separation between business and personal expenses, it's hard to know what you're actually netting after marketing, mileage, and brokerage fees. We provide bookkeeping support and QuickBooks setup for agents who need it.
How you're structured has a bigger impact on your tax bill than almost any other single decision. Here's how the common structures compare for real estate agents and brokers.
| Structure | Self-Employment Tax | Admin Complexity | Best For |
|---|---|---|---|
| Sole Proprietor / Single-Member LLC | 15.3% on all net income | Lowest | New agents or those still building a pipeline |
| S-Corporation | Only on reasonable salary | Moderate | Established agents earning $80K+ net commission |
| Team / Brokerage Entity | Varies by structure | Moderate–High | Team leads splitting commissions with other agents |
The right answer depends on your income level, whether you run a team, and your state's licensing and brokerage requirements. We analyze this for every new client. Read our S-Corp vs. LLC guide →
We evaluate your current structure, run the numbers on what an S-Corp election would save you, and handle the paperwork to make the switch if it makes sense. For many agents earning over $80,000 in net commission income, this is the highest-return tax move available.
S-Corp vs. LLC: Which Is Right for You? →We prepare your business return — Schedule C or Form 1120-S for S-Corps — along with your personal Form 1040, including all schedule attachments. Everything is handled under one roof with full context across both returns.
Small Business Tax Services → Individual Tax Preparation →We calculate your quarterly estimated payments based on your actual year-to-date commissions and adjust as the year unfolds. No surprise April bills. No unnecessary overpayments sitting with the IRS for months.
Tax Planning Services →Showings, listing appointments, and client meetings generate significant deductible mileage. We help you set up a tracking system so this deduction is fully captured and properly documented.
Photography, staging, signage, lead platforms, and listing site fees are all deductible — we make sure these are captured correctly and documented in a way that holds up if questioned.
Clean, current books so you actually know what you're netting after marketing, mileage, and brokerage fees — not just at tax time. We offer ongoing monthly bookkeeping and can clean up the books if they've fallen behind.
QuickBooks Support & Training →Many agents own rental properties or investment accounts alongside their commission income. We handle the full picture — rental income, depreciation, passive activity rules, and coordination across all your income sources.
Tax Planning Services →If you or your team need compiled financial statements for a loan application or business planning purposes, we handle that. Clean, professionally prepared statements that lenders accept.
Financial Statement Compilations →These are the deductions that are specific to real estate professionals — the ones generalist preparers most often underutilize or miss entirely. Every situation is different, and eligibility depends on your specific circumstances, but these are worth discussing with us.
Deductibility always depends on your specific facts and circumstances. The IRS has specific rules about what qualifies, how to document it, and how to calculate it. We make sure you're capturing what you're entitled to — and that it's documented properly so it holds up if questioned.
Big firms want big corporate clients. We built our practice around the agents, brokers, and professionals who are the backbone of Frederick County. You won't be handed off to a junior associate. You won't wait three weeks for a call back. You get a CPA who knows your name and your situation.
Year Mercer Flanagan was founded in Frederick, MD
Years serving local professionals, businesses & nonprofits
Rated by clients across Frederick County
Access to your CPA — not just during tax season
Year-round access to your CPA. Questions get answered when you have them, not weeks later.
We understand the cash flow swings and tax timing that come with commission-based work.
We're based in Frederick, MD. We know this community and we're not going anywhere.
We don't just file your returns. We contact you when something changes that affects your tax situation.
Book a free 20-minute consultation. We'll tell you honestly whether we can help — and what it would cost. No pressure, no obligation.
Book a Free Consultation