@DianeW777 Thank you for confirming my understanding and explaining further about the rules. Regarding your response,
"If the tenant paid the commission to the realtor (your property manager?) that you were liable for, it is rent to you. If it was your property manager, then you will also have an expense on your rental activity for that expense."
OK, I want to clarify that my realtor is not my property manager. I'm maintaining the property myself (as I live within 5 miles of the rental property). I presume, irrespective of my realtor being a one-time agent or on-going property manager, I should file the following:
1. My rental income is full month's rent (even though my tenant paid it out to my realtor directly).
2. I should add that full month's rent value as my commission expense paid to my realtor, thereby offsetting it.
I read somewhere that, the landlord paying the commission to the realtor may have to undergo self-employment tax and that's why realtors take their commission directly from the tenant without involving the landlord. Is this a mis-understanding or it is a fact?
Can you please confirm?
