All Forum Posts by: Courtney Duong

Yes, the exemption for credit card payments does exist, although I don't know of any contractors who will accept credit cards and absorb the fees (they may be out there but I have not come across any).

I don't know about PayPall  or Zelle but I doubt those qualify for the exemption (unless the PayPal transaction is via credit card and not bankdraft).  However, PayPal for business transactions has fees too.

@Courtney Duong

If you read/look at the 1099 form or instructions, it says in three places that credit card transactions don't count basically.  My understanding is because the credit card companies have to send in a form, but I think their limit is $25k or something.  So, the "idea" is the transaction will be reported to the IRS, although there is that gap.

I have no idea about Zelle or Paypal.  Zelle probably wouldn't work as exception.  Of course, a check would go towards triggering a 1099 filing.

Of course, consult a professional (who I think basically says file it anyway since its all computerized for them).

@Padric Lynch

Can you? Yes. Should you? No.

Many reasons why no, and they were already mentioned on this thread. Mainly, your contractor intends to cheat on his taxes, and you will be helping him. Unless he completes Form W-9 and provides his valid SSN, which he won't, so you won't be able to issue him a 1099. You will probably end up breaking two Federal laws: labor/immigration laws (as he may not be authorized to legally work here) and tax laws.

You're unlikely to be caught, but you might, and then you face various risks of extra taxes, penalties etc. 

If you insist on taking this risk, then your best practice for self-protection is to have a simple written and SIGNED contract: you do this, and I pay you this. Then have him acknowledge on the same piece of paper the receipt of the money.

Taxes are not the only reason to have things written and signed. He can later claim that he did not receive this money from you and demand a second payment - either because he is a crook or because he got drunk/high on your money and forgot he got paid (ask me how I know). He can even try to place a lien against you. 

Think about it this way. He ain't scared of the IRS. Would he be scared of you?

If he accepts Zelle or PayPal or check - you're better protected, but he probably won't.

Hello, Newer Realtor here. I currently have a listing and a buyer came to me with no agent asking if I'd represent him if I were to give him a 1% credit of my commission. CA commission is 5% total, 2.5% per side. He tried to pitch to me that it would be better for me to make 4% instead of just 2.5%, and that this is a reasonable arrangement. I gave thought to this arrangement and had to politely decline. Yes, I would be making more commission, but I didn't feel ethically comfortable taking more money from my seller and turning around and giving it to the buyer. If any discount commission was to happen I believe it should go to the seller. Again, I'm a newer agent and this would have been my first dual agency and would love to hear your opinions on the topic. I feel that I made the best choice for myself, you may agree or disagree I'm really looking to hear all sides. Thanks for reading!

Hey Courtney, sorry for the late reply! I do have my accounts linked, as that’s pretty much standard procedure these days of you want auto transfer on any platform. Rental Hero has manual upload abilities too, for instance if your bank isn’t supported.

I’ve been emailing their support for any questions and they’ve been incredibly responsive and helpful. If you want you can try asking them about any of your concerns.

@Prithvi Sri, i just sent you message asking for email. I have two I send over to you. One from attorney and one created by broker.