Comment on FR Doc # 2011-29445

The size standards are appropriate for the industry. Separate size standards are necessary given the widely different ways in which revenues occurs. Specifically rental revenue to a landlord from which operating expenses and a mortgage are paid vs. fee revenue from services for work performed The size standard should be increased to $10M. Given the largest firms now exceed $1B in sales; small firms must grow much larger to compete with the National firms. There should be no limit on the increases in size standards. Regarding 531210 – Office of Real Estate Agents and Broker; the exclusion of funds received in trust for an unaffiliated third party should be continued. These funds are not revenue to the firm, and in fact are often legally held in trust accounts which cannot be used by the firm, and are the property of 3rd parties. They are not treated as revenue for IRS reporting purposes. We propose to add commissions paid to 3rd parties brokers and independent contractors to the exception. Commissions collected which are shared with independent contractors, or 3rd party firms in which a 3rd party broker, often acting as subagent of the broker are treated as revenue, but are immediately passed on to the independent contractor or 3rd party broker without financial benefit to the firm, an immediate debit and credit with no financial gain to the firm in the same way as the present exception. This is the standard practice in the industry for distributing commissions. Independent contractors or 3rd party per cent of sharing with other companies differ substantially. It is the revenue after the commissions are transferred out to the independent agent and cooperating companies that are the true revenues of the firm, and it is the consistent point of measurement among firms in the industry..