I am to receive a real estate broker commission totaling $100,000. I must pay, from my share, another broker $30,000. How do I make sure the IRS doesn't tax me on $100k

[dterian]

Since my net income is $70,000, I want to avoid getting taxed on the $100,000 next April.  I'm assuming I can send the broker I am paying a 1099 along with the $30k, when I file taxes next year, would there be some area in my return to indicate I made $100K but paid $30K of it?

[Critter1]

If the commission is not split at the closing and you get the entire fee then using the 1099 is the correct way to handle it. On the Sch C there is a category for commissions paid so you are not taxed on the entire amount. Have the broker fill in a W-9 for you so you have the information to complete the 1099-misc in January and to keep for your records. https://www.irs.gov/pub/irs-pdf/fw9.pdf

[fanfare]

see here for how to record nominee income paid to someone else.

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

List yourself as the Payer and the other broker as the Recipient.

[SweetieJean]

You may want to send an estimated tax payment to avoid any penalties.

[fanfare]

Why? the $30,000 is not his income.

[Critter1]

No but the $70K is his portion so estimated payments are probably needed. Good thought SJ.