Discussion:Real estate broker reports Gross or Net?
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Discussion Forum Index --> Tax Questions --> Real estate broker reports Gross or Net?
| 19 February 2008 | |
| Licensed real estate broker operates as a Schedule C.
Under the broker are 5 licensed agents. All commissions are paid to the broker and deposited in the broker's checking account. Broker pays the agents their commissions and sends them a 1099 Misc (Nonemployee compensation) at year end. Question: What does the broker report as gross revenue on his Schedule C? Is it the gross commission for the business as a whole? Or does he just report the commissions he earned (on the sales he had)?
What does the broker report as expense on Schedule C? Is it the total of all the commissions the broker paid out to his agents? (which would of course match the 1099s that he sent them) Question: Can the broker report only his commission as the Agency's gross income and not deduct the commission that he paid out?
I am just wondering if there is something special about real estate agencies. | |
| 2008-02-19 | |
| there are a couple of threads on this subject...just do a search. | |
Southparkcpa (talk|edits) said: | 20 February 2008 |
| I have several of these and we report the gross on the broker and paid commissions as a deduction.
never had a problem and it seems to be full and fair disclosure. | |
| 20 February 2008 | |
| gross,
since you should be issuing 1099 for the commissions | |
