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Updated over 1 year ago,
A very large quantity of 1099-MISC's from wholesaling
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