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Potencial Regulatory Changes
06/17/2025
Potencial Regulatory Changes
In this morning’s meeting, Mike discussed potential regulatory changes that could impact the real estate industry, specifically the possibility of agents losing their independent contractor (1099) status and being reclassified as W-2 employees. This shift, driven by the IRS and DOJ’s concerns over unreported income and lost tax revenue from gig workers, could have major financial implications for brokerages, who would then bear the cost of employment taxes. If implemented, it’s estimated that 97.5% of agents could be released from their brokerages overnight due to the increased costs, leaving only top producers employed. Mike challenged everyone to reflect: if this change happened tomorrow, would you earn a raise—or be fired? He urged agents to treat their businesses with the seriousness and discipline of a full-time job, asking whether their current performance reflects someone worth keeping or letting go in a W-2 world.
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