Hello RayW7, hope you are well. I stumbled upon this thread doing some research. From what I gather, you said that if an agent represents themselves in the purchase of a home and a 1099 is issued by the brokerage but the agent contributes their commission as a closing cost credit, that the commission would not be taxable income to the agent it would be considered a deductible expense. The closing cost credit would then reduce the basis in the property by the amount of the commission that was credited.
I would like to know if you have any specific section of the tax code that confirms this. I am considering doing this and from what I have seen so far, if I represented another party yes the closing cost credit would be considered a business expense to offset the 1099 income but if I represent myself it is considered a personal expense. I was wondering if you could possibly provide any more detail regarding this, it would be greatly appreciated. Very different tax implications obviously and anything you could provide regarding your source for this would be very helpful!
Thank you in advance.
Thread address: https://ttlc.intuit.com/community/taxes/discussion/if-a-real-estate-agent-is-representing-themselves...
