Where to file the expense as a realtor

[mjpra2010]

Hello,

I am a realtor and have my own LLC.  So I file my expenses related to real estate to my business expense.

I sold a house in 2021, received commission. But I spent some of the commission fixing the house as a deal with the buyer. Where should I fill this expense in my business?

Thanks,

Jenny

[LeonardS]

You will report your commission as income on your 2021 taxes and you may deduct the portion of the commission used in fixing the house as an expense.  If you used Schedule C you may report the expense in Part V Other Expenses.

[mjpra2010]

Hi Leonard,

Thanks for your advice! I am not sure how to deduct the portion in my commission since the commission was reported on 1099 nec. But I can enter the cost as miscellaneous expense as you advised in part V. Is that right?

Jenny

[LeonardS]

Yes, you will enter the cost as a miscellaneous expense in part V.

And you will report the entire 1099-NEC as income. 

[mjpra2010]

Thank you Leonard!

I did report the entire 1099 nec as income and enter the cost as a miscellaneous expense in part V.

Jenny