Hello,
I am an owner of a small real estate company and I would like to know where on the Corporate tax "income statement" form I can include commissions that are due to agents but have not yet paid out during the current year end . I would like these reflected in the current tax year as the commissions were received at that time and are reflected as such in the General ledger. If these commissions are not deducted from the income statement then my tax liability will be larger. My question is basically - can I deduct commissions that have not yet been paid out but are due to agents and include this as an operating expense or other on my income tax statement. If so where and how can this be done

Thanks,
IDN

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Originally Posted by idn

Hello,
I am an owner of a small real estate company and I would like to know where on the Corporate tax "income statement" form I can include commissions that are due to agents but have not yet paid out during the current year end . I would like these reflected in the current tax year as the commissions were received at that time and are reflected as such in the General ledger. If these commissions are not deducted from the income statement then my tax liability will be larger. My question is basically - can I deduct commissions that have not yet been paid out but are due to agents and include this as an operating expense or other on my income tax statement. If so where and how can this be done

thanks,
IDN

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If you are on the accural basis you may deduct the liability for future commission payments.. If you are reporting on the cash basis, you cannot deduct the commissions until actually paid.

Excellent answer, Delite.