Damn, he had the balls to ask you for referrals. haha Sometimes when you give something up now, you end up getting 10x fold later. But I guess some agents are too dense to understand that.i1 said:If you ever need a side gig, you'll have plenty of custys if you want to offer your polite intimidation services. I think I was way too polite.qwerty said:id be at that brokers house knocking on his door while holding a bat (an actual bat, not THE BAT, that would be a little weird, i think) and politely asking for my money.
I explained this to him face to face with hard evidence directly form HUD site, IRS site, Redfin, etc and repeated it to him over 2-3 times. He couldn't dispute anything I was saying and even acknowledged my points, but didn't seem to care. Kicker was after all this explaining, he asks me very earnestly, "Can you recommend me to others you know?" as if he genuinely thought he has done nothing wrong and is doing me a favor to even be splitting 30% of the gross. I couldn't believe it.
ps9 said:Then you will be one of many BATS at Theo Lacy
i1 said:Yeah, should've told him to call his CPA or tax advisor live together with me on the phone in real-time. He told me he was just in process of figuring out what he can deduct and not. In fact, I will be double taxed now because I am supposed to lower my cost basis on the home when I sell it in the future. It's pretty bad either way - whether he didn't know or was pretending not to after my evidence to him.USCTrojanCPA said:Wow, it's a complete shame that he basically re-traded the original agreement that you guys had using some ambitious language in the agreement. The broker is allowed to deduct the rebate that they make to their client...it's called Line 2 of Schedule C (you can tell him that a CPA told you that). For the clients that request it, I'll put what the exact dollar rebate is in writing so there's no ambitious nature to the agreement. The great thing of the forum is that it makes such service providers accountable and in sales you are only as good as your last deal.
Correct...just make sure the realtor does not issue you a 1099.c4 said:i1 said:Yeah, should've told him to call his CPA or tax advisor live together with me on the phone in real-time. He told me he was just in process of figuring out what he can deduct and not. In fact, I will be double taxed now because I am supposed to lower my cost basis on the home when I sell it in the future. It's pretty bad either way - whether he didn't know or was pretending not to after my evidence to him.USCTrojanCPA said:Wow, it's a complete shame that he basically re-traded the original agreement that you guys had using some ambitious language in the agreement. The broker is allowed to deduct the rebate that they make to their client...it's called Line 2 of Schedule C (you can tell him that a CPA told you that). For the clients that request it, I'll put what the exact dollar rebate is in writing so there's no ambitious nature to the agreement. The great thing of the forum is that it makes such service providers accountable and in sales you are only as good as your last deal.
Aside from all the unfortunate story, I don't think you will be double taxed on the portion that your realtor did not rebate you. If you got 30% of the co-op then you only lower your cost base by that amount, and is the part you may potentially need to pay for cap gain when you sell the house. At least this is how I understand it.
i1 said:Technically I'm not double taxed but this is what I meant.c4 said:i1 said:Yeah, should've told him to call his CPA or tax advisor live together with me on the phone in real-time. He told me he was just in process of figuring out what he can deduct and not. In fact, I will be double taxed now because I am supposed to lower my cost basis on the home when I sell it in the future. It's pretty bad either way - whether he didn't know or was pretending not to after my evidence to him.USCTrojanCPA said:Wow, it's a complete shame that he basically re-traded the original agreement that you guys had using some ambitious language in the agreement. The broker is allowed to deduct the rebate that they make to their client...it's called Line 2 of Schedule C (you can tell him that a CPA told you that). For the clients that request it, I'll put what the exact dollar rebate is in writing so there's no ambitious nature to the agreement. The great thing of the forum is that it makes such service providers accountable and in sales you are only as good as your last deal.
Aside from all the unfortunate story, I don't think you will be double taxed on the portion that your realtor did not rebate you. If you got 30% of the co-op then you only lower your cost base by that amount, and is the part you may potentially need to pay for cap gain when you sell the house. At least this is how I understand it.
Tax 1: when I sell, supposed to lower my basis on home by rebate amt
Tax 2: broker is keeping 25% of the 40% he was supposed to give me due to his claim he can't deduct what he rebates me. So he's making me pay him 10% for his supposed tax liability. That is my gripe because he doesn't owe any taxes on anything he rebates me.
Tell him it's the cost of doing business. Basically he's passing his tax to you. Tell him if he doesn't want to pay tax, don't work/don't earn income.i1 said:What part?eyephone said:i1 said:Technically I'm not double taxed but this is what I meant.c4 said:i1 said:Yeah, should've told him to call his CPA or tax advisor live together with me on the phone in real-time. He told me he was just in process of figuring out what he can deduct and not. In fact, I will be double taxed now because I am supposed to lower my cost basis on the home when I sell it in the future. It's pretty bad either way - whether he didn't know or was pretending not to after my evidence to him.USCTrojanCPA said:Wow, it's a complete shame that he basically re-traded the original agreement that you guys had using some ambitious language in the agreement. The broker is allowed to deduct the rebate that they make to their client...it's called Line 2 of Schedule C (you can tell him that a CPA told you that). For the clients that request it, I'll put what the exact dollar rebate is in writing so there's no ambitious nature to the agreement. The great thing of the forum is that it makes such service providers accountable and in sales you are only as good as your last deal.
Aside from all the unfortunate story, I don't think you will be double taxed on the portion that your realtor did not rebate you. If you got 30% of the co-op then you only lower your cost base by that amount, and is the part you may potentially need to pay for cap gain when you sell the house. At least this is how I understand it.
Tax 1: when I sell, supposed to lower my basis on home by rebate amt
Tax 2: broker is keeping 25% of the 40% he was supposed to give me due to his claim he can't deduct what he rebates me. So he's making me pay him 10% for his supposed tax liability. That is my gripe because he doesn't owe any taxes on anything he rebates me.
Doesn't sound right.