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View Full Version : Paying Taxes as a Realtor


jbk99
Feb 13, 2012, 12:05 PM
My broker will not supply me with a w2, nor 1099. He said since I was paid my commission out of escrow he doesn't have to supply me a w2. I asked the escrow company if they would provide me a w2 and they said they will not either. I made about over $30,000 last year and have no proof to report income to IRS. Do I guestimate the amount on a Schedule C? Is this the only way to show income and what is to prevent self employed realtors from only claiming a portion of income if there is no paper trail?

ebaines
Feb 13, 2012, 12:35 PM
Technically the broker on the selling side pays the commission to the buyer's real estate agent, and consequently if the amount is greater than $600 the selling broker is required to provide a 1099-MISC to the buyer's agent. The fact that the cash was in escrow doesn't matter. This site explains it better than I can:
IRS Rule about 1099's (http://www.realtown.com/community/realtalk/view/00dixp)