Mortgage Broker – No Self Employment Tax.
A broker who managed mortgages received a fee when he sold his house used as a personal residence. He reported the commission as self employment income but the IRS said he has to pay self- employment tax on the commission. The Tax Court overruled the IRS stating that the commission was not subject to selfemployment tax because the sale relates to a personal transaction [Guarino, TC Sum. Op. 201612].
Deduction Denied for Amounts Paid to Children. Read more