JLL brokers: let's lower your lifetime tax rate.
The JLL overview page covers what changes when you convert from W-2 to QREA/IC. This page covers what's possible once you have: the six levers we walk through with every broker who makes the move, with real numbers at real income levels.
Converting makes you a business owner. It doesn't decide what kind.
Leaving W-2 status is the door. What's on the other side of it depends on a second decision JLL leaves entirely to you: whether JLL pays you personally, or pays a company you own.
Paid personally, you're a sole proprietor. That already beats W-2 — you can deduct real business expenses and fund a retirement plan of your own. But every dollar of net commission carries self-employment tax, your contribution is pinned to a formula you don't control, and the year tends to end with a tax bill and a guess.
Put an S Corporation in the middle and six levers open up, and they stack. Everything below assumes the conversion has already happened. What it compares is what you do next.
The S Corp: roughly $6,000 back for every $100,000 you earn.
Having JLL pay an S Corporation rather than paying you personally 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.
Your JLL 401(k) closes to you at conversion, and the 401(k) match goes with it. Whatever comes next is yours to build — and the ceiling is far above what you're leaving behind. Most new contractors land 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) reaches the same ceiling on far less income, and leaves the rest free to come out 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. Separately, the balance sitting in your JLL 401(k) can stay where it is or roll into another qualified plan — that's a decision of its own, and it's part of the analysis.
Here's what controlling those flows looks like at $1,000,000 of income. The same year, five different structures, starting from the sole-proprietor default most converting brokers land in:
| Sole Proprietor | 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. This table compares structures after conversion — it is not a comparison against remaining a W-2 employee. The sole proprietor 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.
One JLL wrinkle first: mileage stays reimbursable for QREA/ICs, and reimbursed miles aren't yours to deduct. The strategy below applies to the business use JLL isn't already paying you for. Sorting out which miles are which is part of the analysis, not an afterthought.
Standard mileage
20,000 business miles × $0.76/mile
~$15,200total deduction
Tax savings: $3,300–$5,400
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 at the 76 cents per mile business rate in effect for travel on or after July 1, 2026; miles driven in the first half of 2026 use the earlier 72.5 cent rate. The right answer depends on business-use percentage, what JLL reimburses, 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.
JLL's travel and entertainment policy stays largely intact after you convert, with three named exceptions: professional association dues, license fees, and mobile device purchases stop being reimbursed. Those become your cost, and your deduction.
The larger category is quieter. Reimbursement isn't automatic — it runs through submission and approval, it doesn't cover everything, and a fair amount of legitimate spending never goes through it at all. Travel that sits outside policy. Client development you decided to handle yourself. Recurring costs where chasing the approval is worth more than the reimbursement. What JLL actually reimburses stays JLL's and isn't deductible to you. Everything you end up carrying yourself is.
- What JLL stopped covering at conversion. Association dues, license and renewal fees, and mobile device purchases. Modest individually, meaningful annually, and now fully yours to deduct.
- What the policy doesn't reach. Travel and entertainment outside the covered categories, spending above policy limits, and the costs you absorb rather than run through an approval queue. Legitimate business expenses either way — and deductible once you're the business.
- What was never reimbursable to begin with. Home office, your own marketing and brand spend, software and tools you buy yourself, the parts of client development that don't fit a category on the expense form.
- Coaching & professional development. Courses, certifications, coaching programs, and conferences that build 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 line to keep clean: an expense JLL reimbursed is not also your deduction. An expense you genuinely bore, documented, run through your S Corp, is. Drawing that line deliberately — rather than discovering it at filing time — is where most brokers either find money or leave it.
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 sole proprietor 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/IC you can stay on JLL's medical, dental, and vision plans. You'll carry a much larger share of the premium, you'll be billed monthly by direct debit rather than payroll deduction, and the portion JLL contributes becomes taxable income to you. Most brokers stay put without ever pricing the alternatives.
The JLL plan
A known quantity with convenient enrollment. Familiar, and not necessarily the best fit or the best price once you're paying most of it yourself.
The comparison
Through our partner, Move Health, we run the JLL 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 JLL. Ever.
Often, brokers find more appropriate coverage at comparable cost. Sometimes the JLL plan wins. The point is deciding with a comparison in hand — and doing it before the enrollment window, not after.
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 JLL 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 where you are in the conversion. No pressure, just information gathering.
We build your custom analysis
Detailed scenario modeling comparing the sole-proprietor default against an S Corp with the levers applied, using your actual numbers. You'll see exactly what the structure decision is worth.
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 structure makes sense and which monthly cutoff you can realistically hit — JLL takes paperwork submitted by the 15th for a conversion effective the 1st of the following month, and the savings only apply to what you earn after that date. If it makes sense, we handle the implementation. If it doesn't, you've lost 30 minutes.
This page is general education for JLL brokers considering conversion to QREA/IC status and the entity decision that follows, 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. Benefit, reimbursement, and conversion process details reflect JLL information available to us and are subject to change by JLL at any time — confirm current terms and deadlines with JLL. 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.
