Q. Do I get 1099 on the portion applied to closing?
A. That's between you and your broker. If you do get a 1099-Misc, you must report the income on your tax return and go no deduction for the "rebate" since it was for your personal benefit.
It seems easy enough to "structure the deal" so there's no income to you. I.e. the seller accepts a lower purchase price in return for you not charging a commission on the sale.
