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TomD8
Level 15

Is a commission rebate taxable to buyer's agent? My buyer agent said she has to pay taxes on 1% of commission she will credit me at closing because it's her income.

@Donnar25 --

 

 If the seller pays the commission to your broker, it is taxable to the broker.  If the broker then pays you as the agent, the amount you receive is taxable to you the agent and should be included on your year-end 1099-NEC and reported on your Schedule C.  But you may then offset that amount by deducting it as a "commission rebate" on your Schedule C.  

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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