I'm a Realtor and thought I had a good understanding of taxes but I'm unsure on this one so I thought I'd reach out to the forum. I'm a 1099 employee, self employed.
Last year I grossed $100,000 in sales (Distributable Commission is what my brokerage calls it).
I paid the brokerage $10,000 in fees (transaction fees, Risk Management, B&O tax).
My 'Net Payable' was $90,000.
My brokerage is reporting on form 1099-NEC #1 Nonemployee Compensation to be $90,000. I would have thought it would have been the $100k and I would itemize the fees.
Are they correct in reporting the $90k (Commission after broker expenses)?
If the brokerage IS correct at reporting $90,000 - then I'm assuming I report that as well and do not deduct the $10k I had in fees, correct?
Thank you in advance for your help!
