Final answer:
Real estate professionals usually work as independent contractors and receive a 1099 form at the end of the year for their earnings, which doesn't include withheld taxes.
Step-by-step explanation:
Most real estate professionals work as independent contractors and receive a 1099 form at the end of the year. As independent contractors, they are self-employed individuals who are not on the payroll of the companies for which they sell property, and therefore, they are not typically provided with a base salary or employee benefits. Instead, they are paid on a commission basis for the sales they complete. Come tax time, they do not receive the traditional W-2 form that employees receive from their employers. Instead, they receive a 1099 form from their brokers or clients, which summarizes their earnings for the year without any taxes withheld, as it is the responsibility of the independent contractor to pay their own taxes, including income tax and self-employment tax.