View Full Version : Two quick Questions

02-11-2006, 03:55 PM
Hi there, I need some quick advice!!!!

1) My wife became a real estate agent last year. She got her 1099-Misc from her broker. In the Nonemployee compensation section, it says $9195, which was the total GROSS commissions from her transactions. THe problem is that she only received about $3800 Net (the broker split those two transactions w/ her 50/50). The first 3 are split, then it goes to 80/20. Anyway, are we supposed to be taxes on all of the $9195? We only received less than half of it?

2) The other question I have is, can she deduct training and education? For example, she paid for a training center to help her pass the exam....



02-12-2006, 08:28 PM
Hi Brian,

Your wife should only pay taxes on the amount she earned. Since the 1099 has the gross amount before the split with the broker, she will need to report the 1099 amount, then report the amount that belongs to the broker as an expense (commission expense).

Yes, she can deduct training and education, and any other expenses that were necessary and reasonable for her to be a real estate agent.

Best wishes,

02-13-2006, 03:31 PM
Awesome!!! So go ahead and report the amount on the 1099 and then put the amount paid to the broker as a commission expense. Where do I fill out the write-offs for training?

02-13-2006, 04:21 PM
I also had some major remodeling work done on my house.....(new furnace & water heater) aren't these purchases deductible?