m******3
发帖数: 983 | 1 Since some agents are so desperate to use taxes excuse to try to reduce the
promised rebate to their buyer, as a CPA, realtor as well as loan officer,
let me post the IRS ruling for you.
Commission rebate is not taxable income to buyer, agent should not issue
1099 to the buyer. It is also not taxable to the agent since the agent
rebate to the buyer and just treated as reduction to the agent's taxable
income. So buyer please do not believe that the agent will pay 50% tax on
the rebate the give to you. All taxes related excuses are lies!!
Here is the link, you may save the document. Per IRS ruling, payment after
closing or credit during closing are not taxable income.
http://www.irs.gov/pub/irs-wd/0721013.pdf | q***u
发帖数: 2683 | | b****y
发帖数: 50 | 3 好人，多谢!
【在 m******3 的大作中提到】
: Since some agents are so desperate to use taxes excuse to try to reduce the
: promised rebate to their buyer, as a CPA, realtor as well as loan officer,
: let me post the IRS ruling for you.
: Commission rebate is not taxable income to buyer, agent should not issue
: 1099 to the buyer. It is also not taxable to the agent since the agent
: rebate to the buyer and just treated as reduction to the agent's taxable
: income. So buyer please do not believe that the agent will pay 50% tax on
: the rebate the give to you. All taxes related excuses are lies!!
: Here is the link, you may save the document. Per IRS ruling, payment after
: closing or credit during closing are not taxable income.
| P******d
发帖数: 14 | 4 I believe you missed the point of discussion. The commission is income to
agent. He/she will have tax liability on the income.
The ruling you cited dose not exampt the agent's tax liability, he will
still need to pay tax on the whole commission, which is reported to IRS by
his company via 1099misc. That is why he will get it back from the home
purchaser.
Do not get me wrong here, using 50% tax rate is too greedy. | m******3
发帖数: 983 | 5 That's why I said some agents are so desperate. Try to claim that they will
need to pay tax so they can rebate less. If you do that, you can tell the
buyers upfront. Tell them that although I promised to give you 1% back but
you will only get 0.5% since agent has to pay tax. But those agents will
not tell the buyers upfront.
Agent will be taxed on NET INCOME not gross receipts.
You got 1099 for full comission. That is your gross income. If you rebate to
buyer, you can deduct the rebate as expense. That is the same as the
business, the refund to client will always be deducted from profit.
IRS already issued this ruling to tell the agent that no 1099 needed for
commission rebate to buyer.
Please DO NOT say that you will be taxed on your full commission. You will
only be taxed on you net income.
Of course, if someone want to pay more tax that is your choice.
【在 P******d 的大作中提到】
: I believe you missed the point of discussion. The commission is income to
: agent. He/she will have tax liability on the income.
: The ruling you cited dose not exampt the agent's tax liability, he will
: still need to pay tax on the whole commission, which is reported to IRS by
: his company via 1099misc. That is why he will get it back from the home
: purchaser.
: Do not get me wrong here, using 50% tax rate is too greedy.
| P******d
发帖数: 14 | 6 For a parttime agent who only do one or two deals in a year, with few
thousands dollars commission income, your suggested way might works out OK
under IRS nose.
For an agent, who close multi-million dollars a year, report an income far
less than the expense (because of rebating 2% rate back to home buyer), he/
she is inviting for IRS's auditing. By then, the expense may not be allowed. | e*******y
发帖数: 71 | 7 Thanks for your post. I've already received 1099 from agent in 2010 and paid
the tax. How can I get my money back? Thanks.
the
【在 m******3 的大作中提到】
: Since some agents are so desperate to use taxes excuse to try to reduce the
: promised rebate to their buyer, as a CPA, realtor as well as loan officer,
: let me post the IRS ruling for you.
: Commission rebate is not taxable income to buyer, agent should not issue
: 1099 to the buyer. It is also not taxable to the agent since the agent
: rebate to the buyer and just treated as reduction to the agent's taxable
: income. So buyer please do not believe that the agent will pay 50% tax on
: the rebate the give to you. All taxes related excuses are lies!!
: Here is the link, you may save the document. Per IRS ruling, payment after
: closing or credit during closing are not taxable income.
| m******3
发帖数: 983 | 8 Need to ask your agent to amend 1099.
paid
【在 e*******y 的大作中提到】
: Thanks for your post. I've already received 1099 from agent in 2010 and paid
: the tax. How can I get my money back? Thanks.
:
: the
| d*********s
发帖数: 777 | | l*********e
发帖数: 605 | |
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