2006-12-11 05:57:57 · 5 answers · asked by Ekaterina K 2 in Business & Finance ➔ Taxes ➔ United States
I would imagine it would be the same as any other income.
2006-12-11 05:59:25 · answer #1 · answered by John's Secret Identity™ 6 · 1⤊ 0⤋
Ted: The question is about the TAX rate not the commission rate.
Commissions are taxed at the same rate as any other income (at least for Federal taxes). The commision is only the revenue side of business income. Expences related to earning the commision would be deductible on schedlue C.
2006-12-11 11:08:26 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
If the real estate being sold is listed on what is know as The Multiple Listing Service, then the comm. is generally 6 %, but can be reduced through negotiation to 5%. The buying and selling entities split the 6 % or the comm. If it is not multi-listed, then the comm. can be as low as 4% but this is indeed rare.
2006-12-11 06:01:37 · answer #3 · answered by Ted 6 · 0⤊ 1⤋
The same as in any business, you are taxed on the 1099 money you bring in. Best to check with tax professional, they can give you details on how to file quarterly taxes, etc. so not to have a large bill at year's end.
2006-12-11 06:00:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The tax rate depends on your income tax bracket. Your income is determined by your net income from the sales.
2006-12-11 05:59:34 · answer #5 · answered by WitchTwo 6 · 0⤊ 0⤋