rfassett Posted January 23, 2015 Report Share Posted January 23, 2015 Facts: Client buys a residence in 2014 with the realtor giving a discount or credit on the commission. Realtor reaches out to client yesterday explaining that "I am going to have to give you a 1099 for the credit because they have added it to my gross income. I will call you tomorrow for your Social Security number." What say you? Is a 1099 required? If so, why? If so, where would it be reported? Thanks! Oh, and the only other fact I have is that this took place in Virginia. Quote Link to comment Share on other sites More sharing options...
mircpa Posted January 23, 2015 Report Share Posted January 23, 2015 Are you going to knock off value of property bought by commission discount ? Realtor could include as commission discount in expense. Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 23, 2015 Author Report Share Posted January 23, 2015 Absolutely. We will handle it correctly on our end. The only issue throwing me is why the realtor would need to issue my client a 1099. This should all be properly documented on the HUD Statement, no? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 23, 2015 Report Share Posted January 23, 2015 Agree with both of you. If the realtor received a 1099 for commission he didn't received, he should either take that issue up with whatever entity paid him to have the form corrected, or he should report the gross amount and take the discount as a business expense. The discount he allowed your client in no way falls within the definition of any payment that would require the issuance of a 1099 to your client. That doesn't even make sense. 3 Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 23, 2015 Author Report Share Posted January 23, 2015 Thanks mircpa and Judy for confirming and validating my thoughts. Quote Link to comment Share on other sites More sharing options...
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