Under the law in effect prior to January 1, 1983, the employment status for services
performed as real estate agents was determined on an individual basis, using the common-law
control test.
For Social Security purposes, we follow the rules of Section 3508 under the authority
of Section 210(q) of the Social Security Act. To be an independent contractor (self-employed),
the “qualified” real estate agent must:
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be a licensed real estate salesperson;
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derive substantially all remuneration received for services performed as a real estate
salesperson directly from sales or other output, such as appraisal activities, rather
than from the number of hours worked; and
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perform these services under a written contract or agreement that stipulates that
the individual will not be treated as an employee with respect to the services for
Federal tax purposes.