S Corp Question- Real Estate Brokerage

[Ann Banos]

Hi,

I have an S corp question.  I have an accountant. Senario-- I own a brokerage with 8 agents and I also still personally do residential sales. My agents are 1099'd as they are independent contractors.  The brokerage makes money from brokering the agents and the brokerage makes a profit from the agents for brokerage services.  Since I'm still a selling agents and those commissions aren't part of the income of the brokerage except for the portion of the commission that is owed to the brokerage (just like other agents in the company)--how should the commissions on personal sales be reported? 1099(like other agents in the office)  or salary? Since agents aren't W-2'd what would be considered the correct "salary"?   Thanks!

[Jeff Filali]

Call your CPA, everyone's situation is unique.