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DmC
New Member

I am a real estate agent. My 1099-misc Box #7 was Net commission. On my Sch-C can I now included the fees/taxes my firm deducted from my Gross Commission?

Firm included a worksheet that shows the fees/taxes they took out. It includes B&O Tax, 50/50 commission split, Franchise Fees, Transaction fees. Can I include these on my schedule C even though my 1099-Misc was the Gross-Fees=Net.

4 Replies
WillK
Level 9

I am a real estate agent. My 1099-misc Box #7 was Net commission. On my Sch-C can I now included the fees/taxes my firm deducted from my Gross Commission?

If the 1099 just shows the net, you would need to know the gross before the expenses were taken out, and add that as your income, then adding the expenses in.

If you do not or cannot figure your gross then you cannot deduct those expenses on your return since you have the net (which already takes those expenses into account). 

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DmC
New Member

I am a real estate agent. My 1099-misc Box #7 was Net commission. On my Sch-C can I now included the fees/taxes my firm deducted from my Gross Commission?

I am absolutely certain that the 1099-mis reflects the Net commission.  Just seemed like the expenses (mentioned above) were already "deducted" from the Gross and now I'm entering them on my schedule C and it's reducing my Net even more. Am I just thinking about this all wrong?
WillK
Level 9

I am a real estate agent. My 1099-misc Box #7 was Net commission. On my Sch-C can I now included the fees/taxes my firm deducted from my Gross Commission?

If they were already deducted and the 1099 is your net, do not enter them in again. That would be double dipping. Just have your office verify that it is the net amount.
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DmC
New Member

I am a real estate agent. My 1099-misc Box #7 was Net commission. On my Sch-C can I now included the fees/taxes my firm deducted from my Gross Commission?

ok...that's exactly what I thought. Thank you for clarifying.

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