Question & Answers
Is commission rebate from the buyer's Realtor to the buyer a taxable income? Transaction was done outside of the escrow and 1099-Misc (Box 7) was issued to the buyer following January. 1) is this taxable income for the buyer and 2) if so, is he responsible for SE taxes as well?
1 Vote
5072 Views
Follow
5 Followers
5 Followers
0 Votes
it is not income, not taxable and the 1099 should not have been issued.
The IRS determined in Ltr. Rul. 200721013 that certain commissions received by real estate brokers that were passed along to their home-buying clients were neither reportable payments to the brokers nor gross income to the clients.
The IRS determined in Ltr. Rul. 200721013 that certain commissions received by real estate brokers that were passed along to their home-buying clients were neither reportable payments to the brokers nor gross income to the clients.
Related Questions...
- To my peers, Since schedule A's will be delayed, What are you doing and what are you telling taxpayers?
- What are the tax benefits of the new stimulus package?
- Can The IRS Revoke My Passport?
- I have received Form 5498. Do I have to include it in my tax return?
- What are the tax changes I need to know about when filing my individual return for 2012?
