One of my agents buys properties under his mom's name to protect assets and he always asks seller to reduce purchase price instead of collecting commissions so he can reduce his 1099 Tax liability. Or he gives a huge credit to her in the closing statement.
He did this a few times with small amounts and stayed quiet but now he is just basically giving away entire commission and reducing purchase price. (According to chatGPT, this is illegal and considered tax evasion because commissions are taxed as ordinary income)
I called him out on it and he threw a huge fit. Basically he wanted to quit and I said no problem at all. I dont know how much nicer I can be. I deposit his commissions checks in his account same day right away and always super responsive with questions/support/advice etc
I don't want to create any liabilities with IRS for someone trying to avoid paying taxes.
Any feedback Please? To be honest, I feel a huge relief since he basically fired himself. He also wanted acccess to MLS to edit and add properties and also admitted he is very sloppy and not careful with paperwork etc. For example, doenst fill out sellers disclosures.
Really appreciate any feedback
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source https://www.reddit.com/r/RealEstate/comments/12v2kk1/question_to_realtors_real_estate_brokers_am_i/
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