Bill

Bill > A5394


NJ A5394

NJ A5394
Allows real estate salespersons and broker-salespersons to form limited liability company to receive commission income.


summary

Introduced
02/23/2021
In Committee
02/23/2021
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill allows real estate salespersons or broker-salespersons, to form a limited liability company, or any other entity permitted by law, to receive commission income from the licensed real estate broker with whom the salesperson is contracted to provide his or her services. The specific permission for a salesperson or broker-salesperson to operate through a limited liability company is intended to eliminate any confusion as to whether they may take advantage of the pass-through business income deduction made available under section 199A of the Federal Internal Revenue Code as part of the federal tax reforms of the 2017 "Tax Cut and Jobs Act."

AI Summary

This bill allows real estate salespersons or broker-salespersons to form a limited liability company (LLC) or any other entity permitted by law in order to receive commission income from the licensed real estate broker with whom the salesperson is contracted to provide services. The purpose of this provision is to eliminate any confusion as to whether they may take advantage of the pass-through business income deduction made available under section 199A of the Federal Internal Revenue Code as part of the 2017 "Tax Cut and Jobs Act" federal tax reforms.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 02/23/2021)

bill text


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