Home Buying in Aliso Viejo>Question Details

Gardencomman…, Home Buyer in Aliso Viejo, CA

Real Estate agent tax queston

Asked by Gardencommander, Aliso Viejo, CA Tue Oct 9, 2012

I sold a short sale listing. The buyer was haggling over the price, especially since the "as is" property needed septic work. The 2 agents contributed $500 towards the costs, and they were taken out of commission at the table. 1099 States total commission price. How do I handle the monies not received, since I contributed back to buyer this amount?

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6
So Cal Homes 951-821-8211’s answer
Consult your tax man.
my opinion is
you only pay based on what you got
you should inform the makers of the 1099 to remake the 1099 based on the true funds or show the canceled check.
If you cashed the check and then handed it back a whole other story.
then you might ask you tax person to expense it.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@socalhomes.biz
http://www.socalhomes.biz
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Sat Oct 13, 2012
You do have an accountant doing your taxes correct? If so tell them just what you just said and they will take it from there.
0 votes Thank Flag Link Tue Oct 9, 2012
Gardencommander:

Building on Lance's comment: submit the closing statement as evidence and request a corrected 1099 from the Broker's office. You never received the $500 so I'm not sure it would qualify as a deducible expense.

-Steve
0 votes Thank Flag Link Tue Oct 9, 2012
I would say to take your paper trail regarding this issue to your tax person at the end of the year. Just guessing you may be able to write it off as a "cost of sale" . Only your accountant or tax person can confirm.
0 votes Thank Flag Link Tue Oct 9, 2012
Use the closing statement as evidence
0 votes Thank Flag Link Tue Oct 9, 2012
It is really best for you to pose your question to your tax advisor. It's outside the scope of expertise for a Realtor to answer.

Best of luck.
-Meredith
0 votes Thank Flag Link Tue Oct 9, 2012
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