The Internal Revenue Service (IRS) requires that listing brokers who pay a cooperative commission in excess of $600 to an individual who is not their employee must complete a Form 1099-MISC. While this is not a new law, it has come to NAR’s attention that not all real estate professionals are aware of this requirement.
The IRS requires individuals that:
- pay compensation of $600 or more to
- an individual who is not an employee
- for services provided
- during the course of the payor’s trade or business
Read more about these requirements and what they mean for your business.