Taxman

Ah yes. Tis the season. But not to be jolly; to be grumpy.

I just finished doing my taxes, and boy are my arms tired. Gee those commission checks look good coming in but those taxes look horrible going out. You always think you're going to have one more good commission to count on before tax time. I guess I was fortunate that I did have one come in but it raced back out again due to aforementioned household disasters.

Realtors are considered independent contractors. They are not employees; the commissions they earn have not had taxes or social security held back. Therefore, you are instructed early on to always hold back 10% of each check for taxes and to make your own social security payments. Good in strategy, bad in practice. This is a very unpredictable business. One never knows if one's last commission will indeed be one's last commission. So spend it if you got it. Then as far as that independent crap goes, there is no such critter when you are working for a living, and who isn't? We like to think that we are in charge of our own destinies but when push comes to shove we are always at the mercy of something. From market fluctuations to plumbing disasters to personal relationships, all we can do is hang on for dear life and hope that, even though the gods may be crazy, they can also be merciful.

And, not to put too fine a point on it, a sales person's broker holds a big key to a realtor's success. Yes, I know we get out what we put in, but a good broker can either promote his or her agents or they can sit and watch. And back to that independentt thing; let me explain how that independent relationship works. My broker holds my license. He can keep me working for him or he can send my license back to the state at which time I am set adrift. A salesperson cannot work without a broker on which to anchor their license. Also, all listings belong to the broker. I do the leg work and go out and get a listing. But it is not my listing, it is his. Same goes for a sale. I make the sale on his behalf. After a closing, I return to the office with a fat check in my hand then hand it over to him. What does he do with that commission check? Anything he wants to. He can give me half, which is customary, or he can keep the whole thing. Does that sound independent? Nah.

Where am I going with this? Give to your broker that which is your broker's, give to God that which is God's, and give to Caesar that which is Caesar's.

My broker has my license, my God has my soul and Caesar has my pocket book, my credit card, my checkbook, my first born....

So my advice for those who die, declare the pennies on your eyes.