New York License Law

A real estate salesperson in New York is considered an independent contractor for tax purposes when:

AThe broker controls all aspects of the salesperson's work schedule
BA written agreement exists stating independent contractor status, and substantially all pay is based on sales output rather than hours worked✓ Correct
CThe salesperson pays their own office rent
DThe salesperson has been licensed for more than five years

Explanation

IRS guidelines allow real estate salespersons to be treated as independent contractors if there is a written agreement specifying independent contractor status and compensation is based on sales output (not hours worked). This is common in the real estate industry.

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