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Level 2

1099-NEC form - question on reported compensation

I'm a Realtor and thought I had a good understanding of taxes but I'm unsure on this one so I thought I'd reach out to the forum.   I'm a 1099 employee, self employed.


Last year I grossed $100,000 in sales (Distributable Commission is what my brokerage calls it).

I paid the brokerage $10,000 in fees (transaction fees, Risk Management, B&O tax).

My 'Net Payable' was $90,000.


My brokerage is reporting on form 1099-NEC #1 Nonemployee Compensation to be $90,000.   I would have thought it would have been the $100k and I would itemize the fees. 


Are they correct in reporting the $90k (Commission after broker expenses)?


If the brokerage IS correct at reporting $90,000 - then I'm assuming I report that as well and do not deduct the $10k I had in fees, correct?


Thank you in advance for your help!


2 Replies
Expert Alumni

1099-NEC form - question on reported compensation

It could be reported either way, but since the broker deducted your commission already, you cannot deduct it again on your tax return. So just report the $90,000 and any other expenses that were necessary and ordinary in the business on your tax return.

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Level 2

1099-NEC form - question on reported compensation

 I ended up doing it that way after posting the question.  Just thought it was a bit odd... Thank you for the help!!

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