She is rebating 50% of her commission (referral payment) to the buyer through escrow. Does she still needs to 1099 the buyer?

[thatlostboy]

My wife is a buyer's agent.  Since this is a new home build her buyer is purchasing.  She is paid a referral fee instead.  She is returning 50% of her commission to the buyer via escrow.    Does she need to 1099-MISC for the rebate?   This is similar to the below except because it's a new home, her role is a "referring agent" instead of buyer's agent.  
https://ttlc.intuit.com/questions/4235302-i-received-a-1099-misc-from-my-real-estate-agent-for-a-com...

[DirkR · Accepted solution]

The principal of the transaction is the same as the other answered question. The client (buyer) of your wife will reduce the cost basis of the home they purchased. This is essentially a reduction in the overall cost basis of the property.

Thanks,
Dirk

[thatlostboy]

So to confirm: it's the same situation as the reference posting where she does not need to 1099-Misc the buyer?

[DirkR]

Correct! Buyer needs to reduce the basis of their home. That will be important some day when they sell the property.