Very part time realtor

[Margaret CPA in OH]

New client has a 1099MISC Box 7 $702. Seems it is a 'tip fee' from a realtor, from the purchase of her house last year. Seems client does have a real estate license but 'I don't use it.' She does take cont ed courses every 3 years to keep it active, though. She is a full time nurse.

So, with no other expenses, no office and no other income, is this self employment subject to SE tax or just other income? I have another client who is an active, part-time realtor with an established agency. He has an office, real expenses and substantial income. What about this new client? After the discussion about home office, I'm not sure. Hobby?

Thanks and please make tonight's snow the last. I have to do a 7 mile workout tomorrow in this and it will only be 16 degrees.

Also, I have "enable emoticons" checked but they are grayed out. How can I fix that? I wanted to put a sad face above.

[jklcpa]

Are all the functions at the top of the reply box grayed out? If they are, you might have clicked on the top left button for "BBCode Mode". Click that again and those functions should no longer be grayed out and be active again.

[Margaret CPA in OH]

Aha! It took some sleuthing but I found it! I would never have guessed a little box would have such a big name or have such power! And how did it get clicked in the first place? Another mystery for another day... Someday I just might explore all those little things, might learn something!

[SFA]

New client has a 1099MISC Box 7 $702. Seems it is a 'tip fee' from a realtor, from the purchase of her house last year.

Margaret, did she receive a "tip fee" for finding her own home? Not sure how that works?

It's either other income, Line 21, or possibly an offset to the real estate commission paid on the price of the home and not income at all? Perhaps she should not have received a 1099-Misc statement.

Could it be, that she independently found a home to buy. Then contacted a realtor friend associated with a broker so that the real estate commission would be split between buyer's realtor and seller's realtor. Then her friend and her split the buyer's commission. That may be how she received the "tip fee" (kick-back).

[Margaret CPA in OH]

Good questions - her answer to my query was the "1099 is a 'tip fee' from a realtor, from the purchase of my house." I will have to ask for clarification. If the second scenario is what occurred, then is it non-se but taxable?

I will email her for more info.