Recent Feedback
A registered real estate agent in Florida collects rent for me on residential property, deducts a 12% commission, and remits the net amount. Am I required to file a 1099-MISC for the commissions that she withholds (which are over $600)? Isn't she supposed to send me a 1099 for the net proceeds?
Optional Information: State/Country relating to question: Florida Already Tried: Looking at IRS website and TaxAct resources and Google.
Hi and welcome to Just Answer!You are correct - the real estate agent must use Form 1099MISC to report the rent paid over to the property owner.
See for reference - http://law.justia.com/cfr/title26/26-13.0.1.1.1.0.5.92.html Example 5. G is a rental agent who manages certain rental property on behalf of property owner H. G finds tenants, arranges leases, collects rent, responds to tenant inquiries regarding maintenance, and hires and makes payments to repairmen. G subtracts her commission and any maintenance payments from rental payments and remits the remainder to H. With respect to payments to repairmen, G is performing management or oversight functions and is subject to the information reporting requirements of section 6041. With respect to the payment of rent to H, G is subject to the information reporting requirements of section 6041 regardless of whether she performs management or oversight functions or has a significant economic interest in the payment.
Experience: Taxes, Immigration, Labor Relations