Posted by William Bronchick on February 20, 2002 at 20:46:48:
You can avoid the 1099 if he is a corporation. Show him how to incorporate - it’s cheap and easy.
Paying Realtor and Not 1099ing - Posted by Mike (IN)
Posted by Mike (IN) on February 19, 2002 at 12:40:36:
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 ilegal 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?