September 25, 2024

Episode 147: Real Estate Agents Are Losing Thousands—Shahar Plinner on How to Stop It

39 minutes

This week on GRIT, host Brian Charlesworth welcomes Shahar Plinner, founder and CEO of Formations, to discuss an often-overlooked aspect of running a real estate business: taxes. Shahar brings decades of expertise in tax planning for the self-employed, particularly real estate agents and team leaders. From his roots in Israel to building one of Seattle’s top accounting firms, Shahar has always been driven by one goal—helping entrepreneurs keep more of their hard-earned money.

In this insightful conversation, Shahar reveals how real estate agents can save tens of thousands of dollars annually by structuring their businesses correctly. “Ninety percent of the agents who come to us aren’t set up as S Corps—and they’re losing significant money because of it,” he explains. Shahar walks through the process of shifting from a sole proprietor or LLC to an S Corporation, which allows agents to reduce their tax liability while still growing their business.

The episode also touches on how real estate agents often procrastinate tax planning until it's too late, leading to missed opportunities. Shahar emphasizes the need for intentional tax management throughout the year rather than scrambling at tax time. “The sooner you start thinking about your taxes, the better the outcome. It’s not just about saving on taxes; it’s about creating a long-term strategy that supports your business growth.”

Brian and Shahar also discuss the exciting new partnership between Sisu and Formations, offering real estate professionals a seamless integration between business performance tracking and tax optimization. This collaboration allows agents to have a holistic view of their business and finances in real-time, enabling smarter decisions year-round.

Top Takeaways:

(4:27) Why real-time financial planning beats last-minute tax fixes.

(9:47) Making sense of real estate taxes—Depreciation, aggregation, and more.

(11:19) How does having a dream team simplify real estate investing?

(12:27) The untapped tax benefits for 1099 real estate agents.

(18:10) Automating 90% of real estate tasks

(23:01) Why live financial data is the key to business confidence.

(24:21) Sisu and Formations—The integration every real estate agent needs.

(28:08) How to eliminate data friction with Sisu’s seamless integration.

(33:27) What are the benefits of S Corps for real estate agents?

If you’re looking to gain a better understanding of how smart tax planning can support your real estate business, this episode is a must-listen. Shahar’s expertise will change the way you think about taxes and how they can be used to fuel your success.

About Shahar Plinner:

Shahar Plinner is a tax and accounting expert with over 20 years of experience. After moving from Israel to Seattle, he built and sold one of the top tax firms in the area. Now, as the founder and CEO of Formations, he focuses on helping self-employed professionals manage their taxes and maximize financial efficiency.

Connect with Shahar Plinner

Formations

...more