Posted by Brent_IL on February 20, 2002 at 24:00:41:
I wouldn’t muddy the waters.
Just give him a personal check with a letter stating that you are sending him a gift and he has no obligation to repay it or return the favor.
If you do this a lot you may have to file a gift return. That will cut into your unified credit.
Paying Realtor a Commision without a 1099?? - Posted by Mike (IN)
Posted by Mike (IN) on February 19, 2002 at 12:43:12:
Can I pay a realtor a commission ($2000)without sending him a 1099?
My realtor’s “Boss” does “BPO’s” for a couple of banks on their non-performing assests. He sends in the values to them which are very conservative appraisals. He does not buy these homes personally because of the conflict of interest but refers them to other investors before they hit the market so they can be the first to bid. These investors then pay him a “kickback” for the lead.
My realtor has a couple of these for me to bid on but says a “Kickback” is expected to his boss for the lead. I told him I don’t mind paying the commission but that I would have to “1099” him at the end of the year. He won’t give me the leads if I do it this way!
Is it illegal to pay him out of my personal account instead of my S-Corp account and not take the deduction and not send him a 1099?
If no deduction, gift who you wish. - Posted by Brent_IL
Posted by Brent_IL on February 19, 2002 at 16:20:06:
You can’t pay a “commission” without tax consequences to the broker. If you do not intend to deduct the $2,000, or use it in a calculation of basis, you may give a gift of $2,000 to whomever you?d like.
Re: If no deduction, gift who you wish. - Posted by Mike (IN)
Posted by Mike (IN) on February 19, 2002 at 19:07:12:
Thanks for your input. If I do it your way…does it matter if I pay it out of the S-Corp? Or, should I do it out of my personal acccount?