New Brokerage Buyer's Guide: What to Look For
Compare top tax software for new real estate brokerages in 2026. Find pricing, features, and practical steps to choose the right fit.
Starting a real estate brokerage brings a host of new responsibilities, and taxes are among the most critical. The right tax software can save you hours and prevent costly errors, but with so many options, how do you choose? This guide compares the top tax solutions for new brokerages, focusing on features that matter most: handling 1099s, tracking commissions, and managing deductions.
What to Look for in Tax Software for a New Brokerage
Before diving into specific products, understand the core requirements for a real estate brokerage:
- 1099 filing: You must issue 1099-NEC to independent contractors (agents) who earn $600 or more. The software should support e-filing and state filings.
- Commission tracking: Your income is commission-based, so the software must handle pass-through income, splits, and tracking per transaction.
- Deduction management: Real estate professionals have unique deductions: mileage, marketing, home office, and continuing education. Look for software with category-specific tracking.
- Scalability: As you add agents, the software should handle more transactions and contractors without a price jump that breaks your budget.
- Integration: It should sync with your accounting software (QuickBooks, Xero) and your transaction management platform (e.g., Skyslope, Dotloop).
Comparison of Top Tax Software for New Brokerages (2026)
Here are five leading options, with realistic pricing based on 2026 rates. Prices are per month unless noted, and reflect small business plans.
| Software | Best For | Starting Price | Key Features | Limitations |
|---|---|---|---|---|
| QuickBooks Self-Employed | Solo brokers and very small teams | $30/month (plus $15 for TurboTax integration) | Mileage tracking, expense categorization, quarterly tax estimates, 1099 filing (add-on) | Limited to one user; 1099 e-file costs extra; not ideal for multiple agents |
| FreshBooks | Service-based brokerages with contractor payments | $19/month (Lite) to $55/month (Premium) | Invoicing, expense tracking, time tracking, 1099 contractor management (on higher tiers) | No built-in tax preparation; you still need tax filing software |
| Xero | Growing brokerages needing full accounting | $42/month (Starter) to $78/month (Premium) | Unlimited users, inventory (if you have listings), project tracking, 1099 filing (add-on) | Steeper learning curve; add-ons for payroll and 1099 cost extra |
| TurboTax Business | Brokerages that want to file taxes themselves | $169 per return (federal) plus state ($50) | Handles partnerships, S-corps, and sole props; guides through deductions; includes 1099 e-file | Not a monthly bookkeeping tool; you must keep records separately |
| Drake Tax | Brokerages with many 1099s and complex filings | $1,500 per year (all-inclusive) | Professional-grade software for tax preparers; bulk 1099 filing, multi-state support | Overkill for a new brokerage; requires tax expertise to use effectively |
Note: Prices are as of early 2026 and may vary. Many offer discounts for annual prepayment.
Practical Steps to Choose and Implement This Week
- List your must-haves: Write down the number of agents you have (or plan to have in the next 12 months), your typical transaction volume, and whether you need to file 1099s for contractors. This will narrow your options.
- Trial two or three options: Most software offers a free trial (30 days for QuickBooks, 30 days for FreshBooks, 30 days for Xero). Sign up for the two that seem best and enter a week of real transactions to see which feels intuitive.
- Check integration with your current tools: If you use QuickBooks for bookkeeping, consider QuickBooks Self-Employed or QuickBooks Online. If you use a transaction management platform, ask if it integrates with your chosen tax software.
- Estimate total cost for the year: Include monthly fees, add-ons for 1099 e-filing (often $3-$5 per recipient), and the cost of tax filing (if you use TurboTax Business, add $169 plus state). For example, QuickBooks Self-Employed at $30/month plus $15 for TurboTax integration and $50 for 1099 e-file (10 recipients) totals about $425/year.
- Set up your chart of accounts: Once you choose, create categories for commission income, referral fees, marketing, office rent, and vehicle expenses. This will make tax time easier.
- Schedule a quarterly review: Mark your calendar for the 15th of April, June, September, and January to review your estimated taxes and adjust your withholding.
FAQ
Q: Do I need to file 1099s for my agents? A: Yes, if they are independent contractors and you paid them $600 or more in a year. You must file 1099-NEC with the IRS and provide a copy to the agent by January 31. Most software in this guide can handle this, but check if e-filing is included or an add-on.
Q: Can I use personal tax software for my brokerage? A: No. Personal software like TurboTax Deluxe does not handle business income, deductions, or 1099 issuance. You need business-grade software or a professional accountant.
Q: What if I have a single-member LLC? A: You can use QuickBooks Self-Employed or FreshBooks for bookkeeping, and TurboTax Business to file your Schedule C. If you have an S-corp election, you’ll need to file a corporate return, which TurboTax Business supports.
Q: How much should I budget for tax software in my first year? A: For a new brokerage with 1-5 agents, expect to spend $300-$600 per year on software, plus $200-$500 for tax filing if you do it yourself. If you hire a CPA, add $1,000-$2,500 for preparation.
The Bottom Line
Choosing tax software for your new brokerage comes down to your size and complexity. For a solo broker or a small team, QuickBooks Self-Employed or FreshBooks offers the best balance of cost and functionality. If you plan to grow quickly and need full accounting, Xero is worth the investment. For those who want to file taxes themselves, TurboTax Business is a solid choice. Avoid Drake Tax unless you have tax expertise. Start with a trial, set up your accounts, and revisit your choice after your first tax season to ensure it still fits. The right software will pay for itself in time saved and penalties avoided.