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?
State/Country relating to question: Florida
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/title26/26-22.214.171.124.126.96.36.199.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.
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