The Three Accounts Rule
- Operating account — where commissions land.
- Tax account — auto-transfer 25–30% of every commission.
- Profit account — auto-transfer 5–10%; do not touch.
Quarterly Estimated Taxes
As a 1099 contractor you owe federal (and usually state) estimated tax on April 15, June 15, September 15, and January 15. Miss them and you'll owe penalties on top of the tax.
Deductions Agents Miss
- Mileage (track every business mile — MileIQ or Everlance).
- Home office (dedicated space only).
- MLS, board, and license fees.
- Marketing, signs, photography, staging.
- Closing gifts (with limits).
- Continuing education and coaching.
Bookkeeping
Use QuickBooks Self-Employed or hire a bookkeeper at $100–$300/month. Reconcile monthly. Don't shoebox receipts and dump them on a CPA in March.
Action Items
- Open a separate tax savings account this week.
- Set up 25% auto-transfer on every commission deposit.
- Calendar all four quarterly tax deadlines.