@Opus 17 wrote "there is no reason for the real estate agent to pay income tax on the amount that was rebated to you."
It's a technical point, but the real estate agent must report the gross commission amount on Schedule C. Of course real estate agent only pays taxes on the net profit.
The 1099-NEC that the agent receives from the real estate brokerage must reflect the gross commission, which would include the subsequently rebated amount.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
