Hi Experts,
I am buying a new construction house in California, Sanjose. My realtor is getting 2.5% commission on the base price of the property from the builder, the realtor is giving a certain percentage of the commission to me as an incentive but he is also saying that he will give me a 1099 and I have to pay taxes on the received amount.
Is that correct? I was under the impression that me as the purchaser of the property do not have to pay taxes on the portion of the commission I am paying.
Can you some please help me in getting the clarity? Thanks a lot.
Regards,
Sudipto
