How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I am a real estate broker. I earned a brokers fee about a

Customer Question

I am a real estate broker. I earned a brokers fee about a month ago. I have not cashed the check. How do I compute the amount of tax I need to pay the IRS before 2016? Is there a formula to follow? Can someone walk me through this, please?
Norma Trager
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Hi and welcome to our site!

As a real estate broker - generally you are classified as a self-employed person.

You will report your income and may deduct qualified expenses.

- you may report all business income and expenses -on the schedule C -

http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

The net income (after deductions) will be reported on the form 1040 line 12 -

http://www.irs.gov/pub/irs-pdf/f1040.pdf

If the business has net income over $400, it may be required to file Schedule SE, Self-Employment Tax

http://www.irs.gov/pub/irs-pdf/f1040se.pdf

and net self-employment income is subject to 15.3% self-employment tax.Self-employment taxes from schedule SE will go to the form 1040 line 57 -

http://www.irs.gov/pub/irs-pdf/f1040.pdf

Also - you will deduct half of self-employment taxes on the line 27.

Generally - that all you needs tax purposes.

Please review all possible deductions - that might help to reduce income tax liability.
Generally your tax liability for 2015 is due by Apr 15, 2016, but if you will owe more than $1000 you might need to pay estimate taxes.

I will help you with estimations, but the first step is to list all your deductible expenses.

Expert:  Lev replied 1 year ago.

.

Expert:  Lev replied 1 year ago.

I appreciate if take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.