I have a friend in another state that wanted to transact in TX, so he asked if I would be the broker on his deals.
I have a personal brokerage license. I am an out-of-state broker, so I just get a small commission on deals and my friend who has an S Corp gets most of the commission.
For example: I have done two transactions in the last year. The total brokerage commission for the two deals was over 240k. Yet, my portion of the commission was only 15k. So I am showing this massive income and also a massive expense, which increases my chance of being audited by 10 fold.
I need to know how to show this on my taxes. I am not really making a lot out of these few deals.
