I am a new real estate agent. My only commission last year was on the purchase of my own home. The business administrator in my office told me today that a 1099-Misc was not filed on me since the commission was on the purchase of personal property. So should it be reported as taxable income?
Any info from experienced agents appreciated.
2007-04-09 14:53:28 · 4 answers · asked by markjhawk2 1 in Business & Finance ➔ Renting & Real Estate
If you took the commission in cash at closing, it's reportable income for your taxes. Doesn't matter whether or not it was earned buying a property for yourself or for a client, it's still income.
2007-04-09 15:16:37 · answer #1 · answered by SndChaser 5 · 0⤊ 0⤋
it is not earnings tax. this is fica/mc. Your company screwed you. They weren't meant to undertaking you the two a W-2 and a 1099-Misc. As an worker, all money is going on the W-2 collectively with commissions. on the W-2, it replaced into subject to 7.sixty 5% fic/mc for $820--which you nevertheless owe. And, tada, you probably did not pay it once you probably did your taxes on account which you tried to sneak the commissions via on line 21. (Your company additionally tried to shift his $820 matching volume on your tax return.) So now you will owe 6% pastime and specific yet another 6% in failure to pay penalty. Get a sort 4137 for 2006 (the extra moderen type 8919 does not prepare till 2007). Fill in traces 3, 5-12 and schedule U. upload a letter of rationalization and mail this with a examine for a minimum of the $820 to the IRS. To get to the type, irs.gov and type 2006 in the quest field.
2016-10-28 07:40:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Take that administrator's advice - unless you are enthused about paying more tax than you are required to pay. I never heard of that loophole but if the office does not issue a 1099 form then the IRS is not going to even hear about that transaction.
It is a good thing you didn't tell a million Yahoo!Answer people about your windfall so that there are no witnesses.
2007-04-09 15:20:38 · answer #3 · answered by Rich Z 7 · 0⤊ 0⤋
This question would be better posed to tax professionals, but yes, your commission would be taxed as ordinary income.
2007-04-09 17:48:38 · answer #4 · answered by Fearless Leader 4 · 0⤊ 0⤋