As a real estate broker, you should file 1099s for real estate commissions and referral fees or other compensation you pay to cooperating brokers, broker-associates, and sponsored salespeople. Brokers and agents are also required to report compensation paid to licensed or unlicensed assistants who are independent contractors, as well as other individuals who provide services to your business.
Want to learn more? Read this article from Texas REALTOR® magazine about filing 1099s, W-9s, and CDAs for your real estate business.
If the licensed Agent is paid direct by the title company at time of Closing does the the Broker still have to issue 1099’s.?
The title company does not “pay” the Agent. The Brokers pay the Agents. The title company merely writes and delivers the checks as a convenience to the Brokers and Agents. Does that answer your question?
Can you recommend an affordable software that will keep track of commissions and deductions for expenses for agent commissions paid by the title company? QuickBooks doesn’t offer anything useful for this kind of situation. Looking for a paystub and year end total for tax form 1099-misc. thanks