Affililated Service Group

[austin3515]

Would you folks consider being a real estate agent a service industry? My first reaction is "no"...

But then I say to myself "is capital a material income producing factor?" Is the house consider capital? If the realtor charged an hourly fee I'd say it was service. Why should that make a difference?

[Belgarath]

How about proposed regulation 1.414(m)-2(f)(1) - capital is not a meterial income-producing factor if the income from the business comes primarily from fees or commissions for personal services performed by one or more individuals?

So I'd say a real estate agent would generally be considered a service organization.

[austin3515]

Excellent! Thank you very much...

[Belgarath]

You're welcome. But note that I said "generally" to leave myself a little wiggle room. I've found that ASG situations are so screwy sometimes that I'm paranoid about giving straight black and white answers.

Come to think about it, I'm not really paranoid. It's just that everyone is out to get me...

[DMcGovern]

In Derrin Watson's "Who's the Employer", he cites a situation in which an independent real estate broker is considered a service organization. Investment in capital as a real estate broker is minimal, but income comes primarily from rendering personal services.

[austin3515]

Imagine how I feel. Being an international man of mystery isn't always what it's cracked up to be

[ESOP Guy]

You're welcome. But note that I said "generally" to leave myself a little wiggle room. I've found that ASG situations are so screwy sometimes that I'm paranoid about giving straight black and white answers.

Come to think about it, I'm not really paranoid. It's just that everyone is out to get me...

Everyone would be out to get you if you weren't selling those evil 419(i) things that are tax shelters or maybe they aren't or maybe they are on every other Monday.

[BG5150]

You're welcome. But note that I said "generally" to leave myself a little wiggle room. I've found that ASG situations are so screwy sometimes that I'm paranoid about giving straight black and white answers.

Come to think about it, I'm not really paranoid. It's just that everyone is out to get me...

Everyone would be out to get you if you weren't selling those evil 419(i) things that are tax shelters or maybe they aren't or maybe they are on every other Monday.

Wait a minute! We all sell those things. Not a thing wrong with them, IMO!

[/sarcasm]