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January 29, 2025
Question

A friend wanted to sell his home so I helped post it up for sale. When the house sold he gave me $2000. I am unemployed. How do I file taxes witht that money?

  • January 29, 2025
  • 2 replies
  • 0 views
It is not a business he just gave me a commission for showing it to buyers.

    2 replies

    January 29, 2025

    you performed services for the seller so it is not a gift and is thus taxable income.  Revenue Ruling 58-112 characterizes a trade or business activity as one that is regular, frequent and continuous. therefore, if this is something you don't do regularly report as misc income on schedule 1 line 8z. if done regularly report on schedule C. 

    KrisD15
    January 29, 2025

    He probably did not give you commission if the state regulates sale agents as most states do. 

     

    You should ask if that was a gift, in which case you would need to do nothing. Gifts are not reported by the person that received the gift.

     

    If the other person deducted the 2,000 as a selling expense,  you would need to claim it. 

    How to report the income in that case, would depend in part by the tax form that person gave you, 1099-MISC or  1099-NEC or something else.

     

    If it was cash (or check) and no tax form, you could enter it as 

    Income

    Less Common Income

    Miscellaneous Income, 1099-A 1099-C   START 

     

    From there you could choose HOBBY INCOME or OTHER REPORTABLE INCOME

     

    @amcaroy03131

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