How to handle self employed real estate firm receiving 1099-Misc and giving 1099-Misc to company agents? I am self employed income and use schedule C.

[suvasshah]

Real Estate firms receive 1099-Misc. After subtracting what company should received, balance goes to the agents. All agents get 1099-Misc from the company. Company is showing income and expenses under schedule C. How to treat 1099-Misc received from builders? Can it be ignored if all income is shown on schedule C and 1099-Misc issues to agents?

[CherylW · Accepted solution]

If you have your income in other records, yes, you can ignore the 1099s.  I'm assuming the 1099-MISC you send to agents are part of your expenses.

[suvasshah]

If "X" is total firm income. and "Y" is what I paid my agents thru 1099-MISC, then my personal income is X-Y. I get builders 1099-MISC which is only 10-20% of total firm income X. So, yes, all income is accounted for. Y goes to all agents combined and X-Y goes as income on my schedule C which is much more than 1099-MISC that firm receives on buyer side. Then, I go through all my (firm) expenses on schedule C since I do not file 1065 and I am sole owner of the firm.