Deductions and Write-Offs

Independent Contractor + Employee

I have my real estate license and am considered an independent contractor. Recently have been presented with a position, will be an employee. Is it possible to be both at the same time? How will this affect taxes? If I do not make much income as an independent contractor, but still am keeping my license and paying off all fees as an agent, am I still able to write off taxes?


First, congratulations are in order.

To answer your question, yes, it is possible to be both an independent contractor and an employee at the same time. Having said that, hopefully, you are not serving in both capacities for the same individual/company, as that would be questionable. So, if you are an employee for one company, but you’re an independent contractor serving your own clients on the side, there is no problem there.

Come tax-time, you will receive a Form W-2 for your work as an employee. You will continue to report your income as an independent contractor the same way you have done in the past (assuming you’ve been an independent contractor prior to 2021). In your question, you don’t state how you’re filing as an independent contractor, so I cannot speak to that issue.

To answer your last question, you cannot write off any of the expenses related to your work as an agent against your employee income. As long as you have income as an independent contractor, you can continue to write off your agent expenses. The only issue is that you don’t want to end up with a loss, as you could be subject to the hobby loss rules.

If you found this free advice helpful, please leave me a review, either through Google (search for Adam Dickreiter or by using the following link or through this website (CPAdirectory).

Answer Provided by: Adam Dickreiter Adam Dickreiter

Good afternoon. I just wanted to follow-up after answering your question earlier this week.

If you found this helpful, I would really appreciate if you could leave a Google review for me (Adam Dickreiter) by following this link or doing a Google search for my name.

Alternatively, you could leave a review on this website by following this link: or searching on this website under Find an Accountant > All CPAs. I am ranked on top on this website, as I have answered many questions from the public, so it’s easy to find me.

Adam Dickreiter, CPA

Answer Provided by: Adam Dickreiter Adam Dickreiter

Share This Answer

Looking For More?

View all Deductions and Write-Offs Questions

View More Questions