Why Every Realtor Needs a Year-End Profit Review Before Tax Season Hits

December is often the busiest month of the year — real estate closings, the holiday rush, and planning for the new year. But this is exactly why a year-end profit review is one of the most important financial steps you can take as a realtor or business owner.

Most professionals push this task to tax season… and that’s where the problems begin.

A Real Case: High Commissions, Low Profit

Last week, I met with a realtor who had an outstanding year.
Her commissions were up, deals were flowing, and on paper, everything looked perfect.

But once we reviewed her financials, the reality was very different.

Her profit was nowhere near what it should’ve been.

Why?

Because the true numbers told a story she couldn’t see on the surface:

• Rising marketing costs
• Increasing brokerage splits
• Frequent travel expenses
• Large quarterly tax payments
• And a few hidden deductions she didn’t track properly

Individually, these seem small. But added together, they quietly drained her income — and she didn’t realize it until we dug into the details.

Why Realtors Lose Money Without Realizing It

Most realtors only analyze their earnings when it’s time to file taxes. But by then:

• Cash-flow issues can’t be fixed
• Missed deductions can’t be recovered
• Tax exposure can’t be reduced
• Profit leaks continue into the next year

A simple one-hour review in December can prevent all of this.

What a Year-End Profit Review Includes

For realtors, expats, freelancers, and small business owners, a detailed financial review at year-end provides clarity you won’t get at tax time.

Here’s what we break down:

✔ Total Commissions Earned

Not the projected numbers — the actual income.

✔ Business Expenses

Marketing, subscriptions, photography, staging, broker fees, mileage, travel, and every deductible expense that affects your taxable income.

✔ Tax Liability Forecast

How much you’ll owe before the year closes, giving you time to plan, adjust, and save thousands.

The Result: More Profit, Fewer Surprises

Clients who prioritize year-end reviews consistently:

• Save thousands in taxes
• Avoid last-minute financial stress
• Prevent cash-flow shortages
• Start the new year with a clear, actionable profit plan

Instead of crossing fingers in April, they enter 2026 confident and prepared.

If You’re a Realtor or Business Owner, This Is Your Reminder

Take one hour this month.
Sit down with your numbers — or with a tax professional who understands real estate and small business finance.

Your profit doesn’t disappear in one big event.
It slips away little by little… unless you catch it early.

Don’t wait until tax season to figure out where your money went. Your financial clarity starts now.