Do you believe real estate agents are legally permitted to give their clients advice on the tax aspects of a transaction?
- No (86%, 156 Votes)
- Yes (14%, 25 Votes)
Total Voters: 181
This poll will close on November 25, 2019.
POLL: Are real estate agents permitted to give their clients advice on the tax aspects of a transaction?
If by “advice” you mean recommending questions for the client to discuss with their CPA, then yes, QUESTION suggestions are considerate.
If you mean telling them about what they can and cannot write off, or about what their depreciation or capital gains tax might be, then a Realtor would be taking on a HUGE liability by giving ANY specific advice. Unless you are also a CPA, preferably the CLIENT’S CPA, DON’T WEAR THAT HAT.
Of course real estate agents may give tax advice — providing they know what they are talking about (which most dont)
There is no rule, or law, that prohibits a broker, salesperson, or best friend from giving advice, but be aware that if the advice is wrong that the client might seek recourse. Most employing brokers would disclaim liability by insisting that an employed agent not give tax advice and tell a client to speak with a tax adviser, but there is nothing to prevent anyone from giving advice.