Real Estate Agent's Gross Income

Jan 18, 2013
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I am real estate agent working for one of the franchise brokerage. I just received 1099 which I thought should be same as my take home pay. Whenever I received commission i.e $3000.00 there 5% goes to Franchise fees ( - $150). Then my broker has 15% split of remaining amount ( $442.50). So I get a check to take home $2507.50. so, lets say I received same amount of commission 10 time and take home check was $25075.00. He is sending me my gross income is ( $30000-1500=$28500) . He told me he can only deduct franchise fee from my gross income and I have to claim $3425 as business expenses.
My question is this:
1. Is he sending me 1099 correctly?
2. If yes, do I have to proof that I dont received extra $3425.00 and how? Can I send my boss 1099? If he is doing correctly, who can monitor he is getting extra $3425 that is his income.
3. If no, how can I proof that he is not doing correctly. Any articles to show him?

Doubt in Real Estate World



VIP Member
May 12, 2011
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United States
If he had paid you the full amount then invoiced you for the $3425 then you would have issued him a 1099. Your situation is the same arrived at by a different way. Question is if you do issue a 1099 is he going to no longer send business your way.??
Anyway your 1099 is correct. And yes you can send him one if he is not a corporation. But refer to my issue above
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