CBRE brokers: let's lower your lifetime tax rate.
The CBRE overview page covers what changes when your commissions go to an S Corp. This page covers what's possible: the six levers we walk through with every broker who makes the move, with real numbers at real income levels.
As a QREA Individual, you're a business owner. Most brokers aren't running it like one.
Being paid on a 1099 already gives you more room than an employee has: you can deduct real business expenses, and you can put money into a retirement plan of your own. But every dollar of net commission carries self-employment tax, retirement contributions are pinned to a formula you don't control, and the year usually ends with a tax bill and a guess.
Put an S Corporation in the middle and the picture changes. Six levers matter most, and they stack. The rest of this page walks through each one with real numbers.
The S Corp: roughly $6,000 back for every $100,000 you earn.
Moving from QREA Individual to QREA Corporation status is the single most powerful structural move available to a high-earning broker, and it's the foundation the other levers are built on. Invest those savings instead of sending them to the IRS, and the math compounds:
| Income Level | Annual Tax Savings | Value in 10 Years (7%) |
|---|---|---|
| $300,000 | $18,000 | $266,105 |
| $500,000 | $30,000 | $443,508 |
| $750,000 | $45,000 | $665,262 |
| $1,000,000 | $60,000 | $887,016 |
| $2,000,000 | $120,000 | $1,774,032 |
Illustrative only. Assumes tax savings of roughly 6% of income, invested at the start of each year at a 7% annual return for 10 years. These figures represent the S Corp benefit alone, before any other strategy on this page.
Retirement contributions on a different scale.
Most sole proprietors we meet are in a SEP-IRA. It's easy to open and easy to fund, and it makes you earn every dollar of the contribution the hard way. An S Corp 401(k) gets to the same ceiling on far less, and leaves the rest of your income free to be taken as distributions.
One percentage, applied to everything
20% of net profit after half your self-employment tax. No employee deferral. To max out:
~$376,000of net profit to reach the $72,000 limit
At $200,000 the SEP caps you around $37,000. At $300,000, around $57,000. And every dollar of that profit carries self-employment tax on the way to the contribution.
Deferral plus a percentage of wages
$24,500 employee deferral, plus 25% of W-2 wages from the S Corp. To max out:
$190,000of wages to reach the $72,000 limit
Income above the wage level flows out as distributions with no Social Security or Medicare on it. The contribution and the payroll-tax savings come from the same wage decision.
2026 limits: $24,500 employee deferral, $72,000 combined, under age 50; SEP-IRA contribution rate of 20% of net earnings after the deduction for half of self-employment tax. Add a spouse on payroll and the household ceiling doubles. Add a defined benefit plan and it can reach $250,000+ a year depending on age. Both of those require W-2 wages, which is why they live on the S Corp side.
Here's what controlling those flows looks like at $1,000,000 of income. The same year, five different structures, starting from where most CBRE brokers are today:
| QREA Individual | Lever 1: S Corp | + $70K 401(k) | + $100K 401(k) | + $261.8K 401(k)/DBP | |
|---|---|---|---|---|---|
| Income | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Federal income taxes | $301,748 | $215,117 | $201,998 | $193,450 | $142,900 |
| Self-employment / payroll taxes | $56,171 | $33,376 | $33,376 | $38,008 | $35,348 |
| Total tax | $357,919 | $248,493 | $235,374 | $231,458 | $178,248 |
| Retirement contribution | $24,500 | $24,500 | $70,000 | $100,000 | $261,800 |
| Retirement value in 10 years (7%) | $362,198 | $362,198 | $1,034,852 | $1,478,360 | $3,870,346 |
Illustrative scenario modeling: single filer, rounded figures, 2026 brackets and contribution limits, standard deduction, no state tax or other income. The QREA Individual column applies self-employment tax (including the additional Medicare tax) to the full net income, deducts half of it, and takes no qualified business income deduction, since a sole proprietor with no W-2 wages loses it at this income level. S Corp columns reflect both employer and employee payroll shares where applicable. Retirement values assume contributions at the start of each year at a 7% annual return for 10 years. Your numbers depend on filing status, state, wage level, and plan design.
The vehicle decision is a five-figure decision.
Most brokers default to the standard mileage rate. It's simple, and it's often the smaller number, sometimes by $10,000+ in tax savings. We model both before you buy.
Standard mileage
20,000 business miles × $0.70/mile
~$14,000total deduction
Tax savings: $3,000–$5,000
Simple to track, but leaves money on the table for higher-end vehicles used primarily for business.
Business asset strategy
$80,000 SUV over 6,000 lbs GVWR, 80% business use
~$64,000total deduction
Tax savings: $15,000–$20,000
Section 179 and bonus depreciation allow immediate write-off of qualifying vehicles, when the facts support it.
Illustrative comparison. The right answer depends on business-use percentage, vehicle cost and weight, how long you'll keep it, and your income. It's a decision tree, not a default. We run this exact analysis as a standalone service: Vehicle Purchase Analysis.
Costs you're carrying today become deductions you can defend.
As a QREA Individual you can already deduct business expenses. The S Corp doesn't change what's deductible so much as how it runs: through the business, on the books, with a reimbursement structure that holds up if anyone asks. In practice, that's when brokers stop leaving deductions on the table.
- Costs you already carry without tracking them. Mileage, phone, marketing, client development. Money you're spending to generate income right now, often paid personally and never deducted.
- Coaching & professional development. Courses, certifications, coaching programs, and conferences that enhance your professional skills.
- Virtual assistants. Scheduling, transaction coordination, marketing support. Legitimate business expenses that free you to focus on revenue.
- Advisory & professional services. Tax planning, bookkeeping, and preparation fees are business expenses that pay for themselves through the strategies they unlock.
The lever only real estate professionals get.
A corporate lawyer earning $500K can't claim Real Estate Professional Status. A software engineer can't either. You're already operating in real estate full-time. This isn't a strategy you have to manufacture, it's a benefit you're positioned to claim.
Material participation
As a full-time broker, you readily meet the 750-hour threshold and can show more than half your professional time is in real estate activities.
Active loss treatment
Depreciation from rental properties can offset your ordinary income, instead of being trapped as passive losses the way it is for other investors.
Wealth multiplication
Shelter investment income through depreciation and compound wealth faster than investors without the status.
Status and material participation are determined by your actual facts and hours, documented properly. That's part of what we evaluate in your analysis.
Let your S Corp pay your state taxes.
Most states with an income tax now offer a pass-through entity tax (PTET) election: instead of you paying state income tax personally, your S Corp makes the payment on your behalf and deducts it as a business expense. A QREA Individual can't make this election. The entity is what unlocks it.
Why that matters: personal state tax deductions are capped on your federal return. An entity-level payment isn't. The election sidesteps the cap, so the same state tax bill produces a smaller federal one. Same state income tax. Less federal income tax. At broker income levels, this single election is often worth five figures a year, and it stacks on top of every other lever on this page.
Each state's version has its own rates, deadlines, and quirks, and a few states still don't offer one. Election timing is part of the annual plan, not an afterthought. More detail: What Is PTET and Should a CRE Broker Elect It?
What the levers are worth over 20 years.
Tax savings aren't the prize. They're the fuel. Invest what you stop sending to the IRS and the levers become a wealth-creation strategy, not a filing-season trick. Let's calculate your number.
Over $1M in additional wealth after 20 years, from the S Corp alone at many income levels.
A comprehensive strategy, entity plus retirement plus expenses, compounding into multiple millions.
All available levers pulled, at higher income levels. Wealth that never shows up if you stay on the default structure.
Illustrative only. Assumes the stated annual savings invested at the start of each year at a 7% annual return for 20 years. Returns are not guaranteed and actual results will vary.
Health coverage: worth a comparison, not a default.
As a QREA you can stay on certain CBRE plans, paying the full premium yourself. Many brokers do exactly that without ever pricing the alternatives.
The CBRE plan
A known quantity with convenient enrollment, at your own cost. Familiar, and not necessarily the best fit or the best price.
The comparison
Through our partner, Move Health, we run the CBRE plan side by side against marketplace options. S Corp owners can generally deduct 100% of premiums above the line either way.
The privacy
You choose coverage that fits your family's actual needs, concierge care, catastrophic-only, anywhere in between, and your health information stays private. Not shared with us or CBRE. Ever.
Often, brokers find more appropriate coverage at comparable cost. Sometimes the CBRE plan wins. The point is deciding with a comparison in hand.
Most accountants keep score. We help you change it.
Bookkeeping, payroll, and tax preparation are table stakes. Any competent firm provides those. The difference is what happens between filings.
The scorekeeper approach
- Looks backward at what already happened
- Files forms based on last year's transactions
- Reactive, compliance-focused mindset
- One-size-fits-all standard deductions
- Annual meeting, then radio silence
Result: you have a second job, CFO of your S Corp, because no one is optimizing your structure proactively.
Our strategic approach
- Goal is a lower lifetime tax rate
- Engineers your business structure for optimization
- Proactive, wealth-building focus
- Customized strategies for your specific situation
- Year-round guidance and scenario planning
Result: more clarity, confidence, and cash in your pocket than you have today. We work with 180+ CRE brokers across the country. This is all we do.
Four steps to your number.
Every CBRE broker's math is different. Here's how we get to yours.
Schedule your strategy call
A 15–30 minute conversation to understand your income, family situation, goals, and current tax structure. No pressure, just information gathering.
We build your custom analysis
Detailed scenario modeling comparing your current setup as a QREA Individual against an S Corp with the levers applied, using your actual numbers. You'll see exactly what you're leaving on the table.
Drill into your numbers
Review the analysis together, ask questions, explore what-if scenarios. Understand precisely how each lever impacts your situation and timeline.
Make your decision
Armed with real numbers, you'll know whether the switch makes sense and whether there's time to have it ready for CBRE's election window. If it does, we handle the implementation. If it doesn't, you've lost 30 minutes.
This page is general education for CBRE brokers considering QREA Corporation status, not individualized tax, legal, or investment advice. All figures are illustrative, rounded, and based on stated assumptions, including a 7% annual investment return that is not guaranteed. Deduction eligibility, contribution limits, entity outcomes, and Real Estate Professional Status depend on your specific facts, documentation, and applicable law. Entity licensing and formation requirements vary by state. Consult a qualified professional about your situation. Advisory services offered through Moisand Fitzgerald Tamayo, LLC.
