Ask Larry

What is meant by "real estate dealer"?

Hi. This is what Social Security's operations manual states about real estate agents/dealers:

"To be considered self-employed, a real estate agent must:

a. Be licensed;
b. Derive substantially all remuneration directly from sales activities, rather than the number of hours worked;
c. Perform under a written contract stipulating the individual is not an employee."

For the IRS definition, refer to the following webpage: https://www.irs.gov/businesses/small-businesses-self-employed/licensed-real-estate-agents-real-estate-tax-tips.

I hope that addresses your question.

Best, Jerry