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    richy802's Avatar
    richy802 Posts: 1, Reputation: 1
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    #1

    Oct 28, 2010, 02:40 AM
    Tax applicability on income from commission
    Sir I got commission from one of my client for selling of one house with the help of my friend . As per the agreement between myself and my friend the commission for that job should be shared each other . But client gave entire commission in the name of myself. Sir I would request you to tell what are the tax application for that ? Whether I would bear entire tax liability or can be shared ? If possible to share tell me the procedure
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 28, 2010, 05:46 AM

    Richy: assuming you're asking about US taxes - you can report the full commission you received as gross receipt on schedule C, and the amount you give to your partner as a commission expense. That way your net profit works out to be the portion that you kept.
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