Real estate covers several very different businesses. An agent earns commissions and spends on marketing and travel. A brokerage manages splits and agent fees. A property owner collects rent and maintains buildings. What they share is a need for records organized around the thing that generates income, whether that is a deal, an agent or a property.

Agents and brokers

Commission income is irregular and often arrives net of brokerage splits, referral fees and transaction fees. Recording only the net deposit hides what you earned and what you paid. We record gross commission and each deduction, so you can see your true income and costs per deal. For agents who are self-employed, current books also make estimated tax payments easier to plan. See our guide to estimated tax payments.

Common expenses for agents, such as marketing, licensing, vehicle use and phone, should be tracked in a business account. The IRS recordkeeping guidance explains why records supporting each deduction matter.

Property owners

If you own rental properties, each property is effectively its own small business. We set up property-level tracking so rent, repairs, utilities, insurance, property taxes, management fees and mortgage interest are recorded per property. That makes it easy to see which properties perform and to prepare records for tax filing.

Security deposits

Security deposits you hold are generally a liability, because you may have to return them. We record them separately from rent, so your income is not overstated.

Improvements and repairs

Whether a cost is a repair or an improvement affects how it is recorded and whether it becomes part of the property's basis. We keep invoices and descriptions so your tax preparer can make that determination. The IRS explains on How long should I keep records? that property records should be kept until the period of limitations expires for the year you dispose of the property.

What our real estate support covers

  • Commission and split tracking for agents and brokers
  • Property-level income and expense reporting
  • Security deposit and escrow liability tracking
  • Asset and improvement records
  • Monthly financial statements

Explore our bookkeeping services and tax services.