Thank you for your response.
Let me clarify the situation:
Let's use some numbers in an example:
The bank charges my customer fees $2000.00. After the loan transaction is done, I am a broker who receives the commission of $5000.00 from the bank. I then paid my customer $2000.00 as an incentive to win the business.
In this case, the bank will issue a 1099 form showing $5000.00 as my income. However, my net income from this case is only $3000.00
How do I report the $2000.00 expense in my tax?
