I'm a real estate agent and get paid with 1099-NEC for commissions earned. When I close a transaction, a portion of my commission goes to the broker and the 1099's only reflect the portion that comes to me. Since I earned all of the commission and am paying my broker his split, can I somehow deduct the broker's split as a business expense?
Depends. If you report the full gross amount as income you can deduct all expenses including his split. BUT if you only report the net amount on the 1099NEC then NO, you can not deduct the broker expenses. It was already deducted.
I report all of the amount noted on box 1 of the 1099. I negotiate for the client to pay for commissions There is a disbursement letter sent to the escrow company signed by my broker so I can get a check mailed to me and the rest is sent to my broker. The amount noted on box 1 of the 1099 is the commission paid to me AFTER the broker split. Point being is that I generate ALL of the commission and am paying a percentage to the broker. Same question, can I deduct the broker's split as a business expense? Thank you for your help.
No. Not unless you first report the whole amount BEFORE the broker split. You either report the gross income and the expenses OR the Net income on the 1099 which has the broker expense already deducted.