Realtor gets 1099 but rebated half of that back to client as fee reduction. How is it reported to avoid tax?

Realtor gets 1099 but rebated half of that back to client as fee reduction. How is it reported to avoid tax?
I asked an earlier question for my parents who were my clients that I rebated the commission money to. I got a 1099 for a real estate commission on their home purchase. I rebated a large amount of that back to the clients as a fee reduction. How do I report this on my tax return to reduce the amount rebated from my gross income and not end up having to pay self employment and income tax on money that I essentially never received?


Answers:

Chosen Answer
Mark S:  I'm not totally sure, but I think you should report the whole amount as income and the rebated amount as an expense. Your parents, if they had to report a gain, would reduce the commission paid by the amount of the rebate.
2007-03-31 09:41:39
zudmelrose:  Without researching the fact family is involved, I would list it on my Schedule C as an expense. Commission Rebate -$XXXX
2007-03-31 09:45:05