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Hi. My name is ***** ***** I will be happy to help you.
There's no and never have been a threshold for claiming legitimate expenses. As long as you can prove it you can claim it.
The expenses must be reasonable (not extravagant) and necessary (helpful, customer in your trade or business). If 15% commission is normal and pay it, you can deduct it. IRS do not put thresholds on income or expenses. Certain deductions may be limited, for instance you can only deduct 50% of your meals and entertainment expenses but you are not limited how many clients you can take out in one month.
No, IRS do not put any thresholds or limits on amount of income you can receive.
Any questions? Is there anything else I can help you with today?
It may have been but it wasn't IRS threshold.
Well, I never heard about IRS limiting how much you can receive or spend on commission. RE agent's main source of income are commissions, some of my clients make living from commissions, why IRS would limit it? I will opt out and give another expert a chance.
Hello, I think you are referring to IRS Form C-EZ. In order to use Schedule C-EZ (instead of Schedule C), your total expenses must be limited to $5,000. This is an optional schedule and you can use it to report self-employment income and expenses. There is no limit to the amount of income you may receive, only the amount of expenses you may report. The benefit of using this form is that you do not have to itemize the expenses.
If you have more than $5,000 in expenses, or want to report an office in home, or want to depreciate something, you need to use Schedule C. In all cases, you are responsible to only take legitimate business deductions, but I think this is what you are thinking of. If this answers your question could please accept.
Okay, but this is definitely the only area where the number 5,000 occurs in regards ***** ***** reporting. You are receiving a 1099-MISC not a W2 with the statutory employee box checked, right?
Hmmm...maybe you are thinking of the $600 rule. You can pay someone up to $600. If you pay more than $600 you have file a 1099-MISC. So you can deduct the $500 paid to the three people without filing the 1099-MISC. Maybe that's the dollar limit you are thinking of.