GUIDE · BOOKKEEPING FOR REAL ESTATE AGENTS
Bookkeeping for real estate agents,
from the commission check to the quarterly payment.
A real estate agent should run a separate business bank account, record each commission at its gross amount with the brokerage split and fees as expenses, log every business mile, and set money aside for quarterly estimated tax. ZeraBooks bookkeeping services keep agents’ and small teams’ books monthly from their statements and commission statements.
Free call · from $150 a month (USD) · quoted for your accounts and closings
HOW AGENTS ARE PAID
Is a real estate agent self-employed for taxes?
Almost always. The IRS treats licensed real estate agents as self-employed for all federal tax purposes when nearly all their pay comes from sales rather than hours worked and a written contract says they aren’t employees. That describes the usual brokerage agreement. No tax is withheld from your commissions, and the brokerage reports what it paid you on Form 1099-NEC.
So you run a small business, even if it never feels like one. It earns income, pays its own costs, owes income tax and self-employment tax on the profit, and pays during the year instead of once in April. Your books are where that profit is worked out. The 1099-NEC is a check on your books, not a substitute for them.
Tell us about your books. We’ll scope the work and quote it before anything starts.
CHART OF ACCOUNTS
What chart of accounts does a real estate agent need?
A short list is enough. Numbers follow the ZeraBooks ranges: assets from 10000, liabilities from 20000, equity from 30000, revenue from 40000, cost of revenue from 50000, operating expenses from 60000.
Revenue (40000s)
40100 Gross commission income, your side of each closing before anyone takes a cut. 40200 Referral fees received from agents you send clients to.
Cost of revenue (50000s)
50100 Brokerage split, 50200 Transaction fees, 50300 Referral fees paid. These only happen when a deal closes, so they sit right under the income they come out of.
Operating expenses (60000s)
60100 Desk fees, 60200 MLS and association dues, 60300 E&O insurance, 60400 Marketing (photos, signs, listing ads), 60500 Lead generation, 60600 Vehicle, 60700 Client gifts, 60800 License and continuing education, 60900 Phone and software.
Assets and liabilities
10100 Business checking, 10200 Tax savings, 20100 Business credit card. Keeping estimated tax money in its own account stops it looking like spending money.
Equity (30000s)
30100 Owner draws for money you move to your personal account, and 30200 Estimated tax payments if you pay federal estimates from the business account. Neither is a business expense.
ONE CLOSING
How do you record a commission split?
Dana, a fictional agent, lists a home that sells for $480,000. The listing agreement pays 5%, or $24,000, shared equally with the buyer’s agent, so Dana’s side is $12,000. Dana’s brokerage keeps 20% of that, $2,400, and charges a $395 transaction fee. The brokerage deposits $9,205. Book it gross, like this.
| Line | Debit | Credit |
|---|---|---|
| 10100 Business checking: the deposit | 9,205.00 | |
| 50100 Brokerage split, 20% of $12,000 | 2,400.00 | |
| 50200 Transaction fee | 395.00 | |
| 40100 Gross commission income: Dana’s side | 12,000.00 | |
| Totals | 12,000.00 | 12,000.00 |
The buyer’s agent’s $12,000 never belonged to Dana, so it isn’t in the books at all. Recording only the $9,205 deposit would hide $2,795 of costs, and over a year you lose sight of what the brokerage really costs you. Brokerages differ on whether the 1099-NEC shows your share before or after their cut. Booking gross with the split as its own line lets you match either one.
MONTHLY GOTCHAS
What do real estate agents get wrong in their books?
The same four come up in almost every agent’s first year of clean books.
Client gifts above $25
The IRS lets you deduct no more than $25 per person per year for business gifts (Publication 463). Wrapping and shipping don’t count toward the $25. Three $120 closing gifts to three buyers are $360 in the books, with $75 deductible. Book the full cost to 60700 Client gifts with each buyer’s name in the memo so your tax preparer can apply the limit.
A mileage log written in April
Publication 463 asks for the miles of each business trip, the date, where you went and why, and your total miles for the year. A showing, a listing appointment and a trip to an inspection all count. Driving from home to the brokerage office, if that is your regular place of work, is commuting and doesn’t. Keep the log as you drive, then record the year’s vehicle cost in 60600 Vehicle.
Personal spending on the business card
Groceries on the business card aren’t a business expense. Move them to owner draws when they’re recorded, not in March.
Referral fees paid without a W-9
If you pay another agent’s company a referral fee, ask for a Form W-9 first. For payments from 2026, a 1099-NEC is due for each non-corporate payee paid $2,000 or more in the year.
QUARTERLY TAX
When are a real estate agent’s estimated taxes due?
With nothing withheld, federal tax is paid in four installments. On top of income tax, self-employment tax is 15.3% (12.4% Social Security, 2.9% Medicare) and applies once net earnings reach $400. Half of it is deductible when your income is worked out. Your tax preparer sets the amount. The books just have to be current enough to tell them the profit so far.
| Income earned | Payment due |
|---|---|
| January 1 to March 31, 2026 | April 15, 2026 |
| April 1 to May 31, 2026 | June 15, 2026 |
| June 1 to August 31, 2026 | September 15, 2026 |
| September 1 to December 31, 2026 | January 15, 2027 |
Source: IRS estimated tax FAQ. The periods aren’t equal quarters: the second covers two months and the last covers four. A due date that falls on a weekend or holiday moves to the next business day; none of the 2026 dates do. Each payment from the business account goes to owner draws or 30200 Estimated tax payments, never to an expense.
WHO THIS IS FOR
Is bookkeeping different for a team or a brokerage owner?
For a small team, a little. If the brokerage pays the whole commission to the team lead, the lead books it gross and records each member’s share as an expense, 50400 Team member commissions. The lead may then owe those members a 1099-NEC at $2,000 or more. If the brokerage pays each member directly, every member keeps books like Dana’s and the brokerage sends the forms.
A brokerage owner is a different business. Brokers usually hold earnest money and other clients’ funds in trust or escrow accounts under state rules, and those accounts need their own reconciliation. This page covers agents and small teams, not trust accounts. Managers who hold owners’ rent and deposits should read bookkeeping for property management. Agents who also flip or build should see bookkeeping for contractors.
IN ZERABOOKS
How does ZeraBooks keep a real estate agent’s books?
ZeraBooks has no bank feed or brokerage connection, so the month starts with what you upload.
- 1
Send statements and closing paperwork
Bank and card statements plus the commission statement or disbursement sheet for each closing, through your upload portal.
- 2
Each closing is booked gross
One journal entry per closing records your side of the commission with the split and fees as their own lines, exactly like Dana’s table above.
- 3
Draws and tax payments are kept out of expenses
Transfers to your personal account and estimated tax payments go to owner draws, so the profit your tax preparer sees is real.
- 4
The month is checked against the bank
Checking, tax savings and the card are each matched to their statement balances before the month is closed. You see the books in a read-only login and get reports on the schedule you pick.
Do real estate agents need a separate bank account?
It isn’t a legal requirement for a sole proprietor, but it is the cheapest bookkeeping you will ever buy. One account for commissions and business costs, one for tax savings, and personal spending somewhere else.
Should I record my commission gross or net?
Gross. Record your side of the commission as income and the brokerage split and fees as expenses. Your taxable profit comes out the same either way, but gross books show what the brokerage costs you and match the 1099-NEC whichever way it is reported.
Are desk fees and MLS dues deductible?
They are ordinary costs of running the business for most agents, and the books carry them as operating expenses. Your tax preparer decides what goes on the return.
Do I need a bookkeeper or an accountant as an agent?
Usually both, at different times of the year. A bookkeeper keeps the closings, draws and expenses straight every month. An accountant prepares the return and sizes the estimated payments. Bookkeeper vs accountant lays out who does which job.
How much does bookkeeping for a real estate agent cost?
ZeraBooks starts at $150 a month and quotes after a free call, based on accounts and closings. For hourly and in-house numbers, see how much a bookkeeper costs. Agents who would rather do it themselves can use ZeraBooks AI bookkeeping from $79 a month billed annually.
WE DO YOUR BOOKS
Spend Saturday at the open house.
Hand over the books.
Tell us how many accounts you use, roughly how many closings you expect and whether you run a team. We’ll quote the monthly work before anything starts. Book the free call.
Last updated October 17, 2026 · Written by Damin Mutti, founder of ZeraBooks