Can a real estate agent deduct the commission paid to her broker from transactions, even though paid by title company directly to broker

Forum|Forum|11 months ago
April 16, 2025
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DaveF1006

It depends on how the commission is reported on tax documents. If the real estate agent receives a 1099-MISC that includes the full commission amount (both the agent's and the broker's share), then the agent can deduct the portion paid to the broker as a commission expense.

However, if the broker receives the full commission and then pays the agent their split, the agent would only report the amount received as income and wouldn't deduct the broker's portion.

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