Real Estate Commission Rebates (from perspective of Realtor back to Client)

Can Realtors claim real estate commission rebates (given back to clients they represent) against their real estate commission income? Let's say commission was $10,000 and you gave back $1,500 to them. Where is this claimed?

Also, should commissions be reported on a net basis (after the brokerage takes their cut of the split) or gross (total commissions before the split is done). Hypothetical example, 90-10 split. Total buying (not including selling) commission $10,000. Realtor keeps $9,000; brokerage gets $1,000; net to Realtor $9,000

Answer

Your brokerage should issue you a T4A showing a full amount of the commision. If you gave back a portion to your client in the form of a cheque or gift card for example you can claim that portion as a promotional gift expense.

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