I have contributions towards closing cost on investment property. My real estate agent issued 1099-nec for the amount. I use Turbo Tax Home and Business. I am unable to enter 1099-NEC under business which is actual reason for this payment but have to report under my personal Income. How to handle this?
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Real estate commission rebates are not taxable income but reduce your home's basis.
As an example, if you purchase the home for $200,000 and receive a $1,000 real estate commission rebate from your realtor, your cost basis in the new home becomes $200,000 - $1,000 = $199,000.
The problem comes in reporting the 1099-MISC which has been issued to the IRS. It would be preferable if the 1099-MISC would be withdrawn by the issuer.
If the 1099-MISC is not withdrawn, follow the steps below to report the income and reverse the entry.
The entry will be reported:
Make sure that you keep records of all transactions. Later, you may need to demonstrate to the IRS that this is not taxable income.
View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
See this TurboTax Best Answer.
Real estate commission rebates are not taxable income but reduce your home's basis.
As an example, if you purchase the home for $200,000 and receive a $1,000 real estate commission rebate from your realtor, your cost basis in the new home becomes $200,000 - $1,000 = $199,000.
The problem comes in reporting the 1099-MISC which has been issued to the IRS. It would be preferable if the 1099-MISC would be withdrawn by the issuer.
If the 1099-MISC is not withdrawn, follow the steps below to report the income and reverse the entry.
The entry will be reported:
Make sure that you keep records of all transactions. Later, you may need to demonstrate to the IRS that this is not taxable income.
View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
See this TurboTax Best Answer.
Thank you for the assist with this.
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