Tax Deductible Commission Advance Fees
January 21st, 2008 by Sean Whaling
We get this question often, especially as a New Year rolls around. The question is: Are the fees associated with receiving a commission advance tax deductible? The answer is: they CAN be. The IRS may allow you to deduct costs associated with using eCommission provided:
a) you were an independent contractor at the time of your advance
b) you used the proceeds of your advance exclusively for business purposes
eCommission will be sending out tax summaries to all active clients who completed advances in 2007 over the next two weeks. I suggest that you consult with your accountant or tax preparer in order to determine whether you are eligible to receive this deduction.
I found a great blog posted in Active Rain by Ginny Nieves-Zmijewski, a Realtor in North Carolina listing 11 things to remember when figuring out your available tax deductions. Check it out here: Tax Deduction Tips
Thanks,
Sean
