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Tax Planning/Real Estate Brokerage Tax Questions



I have a real estate brokerage in Florida registered as an LLC. I am the only member but do have two agents under the brokerage license. Only one of which has closed any deals this past year. My question is regarding forms I need to provide them for their tax returns and what should be sent in for the LLC. My understanding is that after I have their W-9 I can supply them with a 1099 showing their take of commissions over the past year. Their split is with the LLC who is just me and therefore I receive the difference. On my 1099 would I just provide my take on their commissions? Also, for the LLC itself is there any forms I need to complete regarding these commissions? Thanks in advance.


Jeff - Based on what you are telling me, you should issue a 1099-MISC (Box 7) to any person who was compensated as a non-employee.  That would be any agent below you.  The threshold is $600, so anyone to whom you paid more than $600 should receive the 1099-MISC.

You would not, ordinarily, have a 1099 issued to you.  I assume you are what is referred to as a single member LLC or SMLLC and you report your earnings on a Schedule C.  If that is correct, then you (meaning your LLC since they are technically one and the same) would NOT issue yourself a 1099.  The net income from your business after expenses is reported on Schedule C of your individual tax return and then flows to the front of your 1040.

There are not additional forms that you should have to issue with respect to these 1099s.  There may be a requirement in Florida to issue an LLC income tax return, but you will need to find out if that is the case.

I hope this helps.

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

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