Derek Middlebrook, PLLC
Real Estate Technology & Services
Based on Actual Banking Data
| Source | Amount |
|---|---|
| Carol Royse PLLC Payroll | $21,125 |
| Your Home Sold G - Revenue Share | $12,023 |
| Mobile Deposits / Checks | $7,497 |
| Zelle / ACH Transfers | $4,500 |
| Other Income | $8,335 |
| Total Revenue | $53,480 |
Note: The business shows a net loss of $31,864 for 2025. This may result in no tax liability. The loss can potentially be carried forward or used to offset other income (consult your tax professional).
| Category | Amount | Notes |
|---|---|---|
| Software & Technology | $2,665 | OpenAI, Zapier, Google Workspace, Netlify, Supabase, Anthropic, Twilio |
| Office Supplies & Equipment | $6,212 | Best Buy, Staples, Amazon, Apple, Target |
| Meals & Entertainment (50%) | $8,640 | Business meals - 50% deductible = $4,320 |
| Travel | $6,410 | American Airlines, Delta, Hotels, Uber |
| Marketing & Advertising | $4,008 | TikTok Shop, Meta PC, Facebook Ads |
| Education & Training | $3,686 | Maverick RE, CE Shop, Compass Christian |
| Auto & Transport | $2,489 | Tesla Service, Gas, Parking, Discount Tire |
| Other Business Expenses | $51,234 | Printful, Godaddy, Domain purchases, WDW tickets, Misc |
| Total Expenses | $85,344 |
* Some expenses may need personal/business allocation review
1. Data Source: All numbers derived from Wells Fargo banking export covering 2023-2026. Transactions categorized based on description/vendor.
2. Business Loss: 2025 shows significant net loss ($31,864). Major expenses include business development (domains, branding), education, and equipment.
3. Mixed Expenses: Some expenses like Disney tickets, Tiffany, and personal items may need review for business vs personal allocation.
4. Payroll Income: Regular bi-weekly deposits from Carol Royse PLLC ($1,625.40) appear to be W-2 or 1099 income.
5. Revenue Share: "Your Home Sold G" payments appear to be commission/revenue share from real estate activities.
6. Prior Year Loss Carryforward: 2023 also showed significant losses (~$81k) that may be available for carryforward.
1. Should any expenses be reclassified (personal vs business)?
2. Can we carry forward 2023-2025 losses to future tax years?
3. Is the business activity classified correctly (Schedule C vs other)?
4. Any opportunity for cost segregation or accelerated depreciation?
5. Should we file for an extension to gather more documentation?
Document generated on February 3, 2026
For tax year 2025 (January 1 - December 31, 2025)
Data Source: Wells Fargo Banking Export (3 years of transactions)