We purchased a new house in Texas last year. The realtor give us a rebate after closing and sent us a 1099-NEC form. The rebate is not included in the closing statement. The reason is that the loaner stated the incentive already reached the limits that cannot put the realtor rebate in. A few questions we have:
1) Is this rebate taxable income or nontaxable income? I saw some post said it's not taxable income, instead, it's considered as an discount/adjustment of house purchase. Is it true even if the rebate is not in closing document and we receive after closing?
2) How do I report this 1099-NEC in Turbotax? When I enter a 1099-NEC, it asks what type of income. None of option is correct to me (screenshot below), and I can't skip it. Realtor told me to choose the first option, but I am not self employment....... so confusing
3) Some posts say report 1099-NEC, then make an adjustment back with the Miscellaneous Income(with negative amount). Or, don't report in Turbotax, but file it in paper with the 1099-NEC and write a statement with this (https://www.irs.gov/pub/irs-wd/0721013.pdf) to explain why this is not included.
It's a little long, thanks in advance!
