Most of the information I found online related to the issue referred to the Redfin IRS ruling -
http://www.redfin.com/stingray/do/landing-page?uid=pr-irs-ruling
According to it, a 1099 should not be issued for a buyer agent commission rebate. But, I have already been
issued a 1099. Does that make the rebate taxable? If no, how do I report it on my taxes?
March 13th, 2010 at 6:01 pm
very tricky question.
The redfin ruling is merely a clarification, not IRS Code.
The rebate could easily be considered income, particularly if a 1099 was issued. You should request a meeting with the IRS in local area. Take the redfin ruling, and your 1099, your real estate closing papers, and discuss with them.