Under what category is this a business deduction?
During the year, I gave both my sellers and my buyers over $100,000 in rebates and discounts. For the sellers, they got the additional money through escrow and will pay taxes on it as part of the profit of the house, so I don't feel comfortable giving them a 1099 and having them pay taxes twice. For my buyers, many used the rebate to buy down the loan rate, something that would normally be tax-deductible for them if they used their own original funds, so again, I don't feel comfortable giving them a 1099. Plus, in both circumstances, I didn't tell my buyers and sellers that they would be receiving a 1099 and I don't want to go back to them now with that news.
Any help would be appreciated!
