When it comes to real estate Transaction Coordinator (TC) fees, how do you claim them and what is the proper form to use? Since TC fees are considered strictly for the benefit of the agent by law, how and where to claim these fees can be confusing.
Watch this video to understand the real estate regulations regarding your TC fees, how to claim them and what forms you need to document them.
The entire process is explained by Broker of Record and Real Estate Attorney Spencer Coordinator.
TC fees are typically an issue at the end of the year when taxes come into play. Here are a few of the key points Spencer addresses in this video:
:32 Where NOT to put the TC fees
:55 Why is it not legally binding to write it in the real estate purchase agreement?
1:20 If you are representing the seller
1:50 If you are representing the buyer
or BBR Buyer Broker Agreement
4:00 How does the IRS and Franchise Tax Board categorize TC Fees?
5:10 What is considered commission?
6:20 What will show up on my 1099?
7:30 Can I expense my TC fees?
In “Spencer’s Legal Spin” Spencer Lugash of Lugash Law Center and Big Block Realty shares real estate tips and law updates that keep you in compliance!
HAVE Questions About TC Fees and requirement for TC documentation and claiming, feel free to reach out:
Real estate laws and regulations can be confusing. Spencer’s Legal Spin answers your real estate regulation and compliance questions every month. Tune in, send an email with questions you would like answered, and spread the word by sharing this link!
Take a look at some of Spencers other videos:
I hope this video was useful and answered your questions on the how to claim your TC fees and where to claim them on your documentation.
To your success,
Broker of Record
Real Estate Attorney
Notice: This is intended to be a general discussion only, and must not be considered real estate or legal advice. Your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on this video, or any of its links, is expressly disclaimed. This video is not legal, loan, accounting, real estate or tax advice, and is not to be acted on as such, it was outdated the moment it was produced and is subject to change without notice. If you are dealing with a potential real estate investment, foreclosure, short-sale or any other type of transaction, you are advised to consult the appropriate licensed professionals.