Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago on . Most recent reply

User Stats

2
Posts
0
Votes
John Rogers
0
Votes |
2
Posts

A very large quantity of 1099-MISC's from wholesaling

John Rogers
Posted

Question for you guys!
 
Some background...
- I know when you sell a house you take title to, the title company generates a 1099-S, and that sales amount will need to match a gross figure on a tax return (e.g. an install sale amount, a sales amount on the Schedule D, etc)
- However a new title company I am using, when it comes to assigning a contract or wholesaling a house (AKA I take a fee like a commission, and DO NOT not close on the property), is issuing 1099 MISC forms for every single assignment transaction. Every single one. I am OK with this, as my gross receipts on my Schedule C (for my pass through LLC that does wholesaling / assignments) will be equal to or greater than what's on the 1099 MISC's. The SSN/EIN/other data should all match. We're all good there.
 
The question....
- So if I close 60 assignment transactions with them in one calendar year, that will literally result in 60 1099 MISC's being generated. Is this a problem of any sort? The math will add up, as I report all my income, but will it make any IRS computers say "oh ****, this guy has 60 1099 MISC's! ERROR". Is this an audit flag? Has anyone ever seen this type of situation before?
 
Thanks for any feedback in advance

Most Popular Reply

User Stats

5,128
Posts
6,013
Votes
Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
6,013
Votes |
5,128
Posts
Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

@John Rogers

It does not create any issues, but their practice is uncommon. Most companies will aggregate. Either way, no downside for you.

  • Michael Plaks
  • Loading replies...