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Real Estate Commission for Referral - Active Role in Business Operations?

I am a real estate associate (license in escrow and can refer buyers to agents).  I happened to refer someone in 2016 and received a commission.  I work full time as a business analyst so am not active in real estate.  Preparing my 2016 taxes and TurboTax shows $0 under "Income from 1099-MISC" and instead put the commission amount under Schedule C.  I checked that it's "commission from a payer that is not my employer" (assume that's correct for my situation).  I had to enter a business code which I did.  Now it wants to know if I played an active role in business operations.  I assume it should be "no" as I only referred someone to another agent.  Based on my specific situation, what is your recommendation?  Thank you!


1 Best answer

Accepted Solutions
RichardK
New Member

Real Estate Commission for Referral - Active Role in Business Operations?

I think you do play an active role and the answer should be Yes, because the commission is based on a referral, and you actively made the referral.

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1 Reply
RichardK
New Member

Real Estate Commission for Referral - Active Role in Business Operations?

I think you do play an active role and the answer should be Yes, because the commission is based on a referral, and you actively made the referral.

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