I'M THE BYERS AGENT I'M ALSO ONE OF THE 4 BYERS OR INVESTERS, OF THE PROPERTY. MY COMMISION CHECK WAS MY PART OF THE INVESTMENT WHAT DO I DO ABOUT TAXES? DO I PAY TAXES ON THE COMMISION OR IS THERE A TAX WRIGHT OFF FOR INVESTMENT?

The commission would be part of your gross income for the year. You will want to be sure any money spent on your investment be properly reported on IRS forms to help reduce you tax liability. I strongly recommend that you seek the services of a CPA, one who is knowledgable in real estate investments.

First off I wouldn't have invested with 3 other people.When it comes time to flip or rent out everyone will have a diiferent thing they want to do in mind based on what they are going through in there lives.

I hope all 4 of you have a detailed agreement in writing as to what is going to happen with the property and the goals with it.When one person sells there interest later on it will depend on how everyone decoded to hold title on the property as to what you can do or not do with it.

If you have not set yourself up as a corporation(llc for most people) now is the time to do it.You can write off many things as an expense food,travel,mileage,office supplies,etc.Then you can set so much to your retirement fund a roth ira or similar.By expensing things out you can cut your self employment tax in half.

What you can do and not do depends on many factors so you need to get you a r.e. tax attorney that is familair with investment property and yes it does make a difference!

Normally your commissions and profit or loss on investment is two different tax situations. Your commission is typically the same as it would be with any other sale unless your partnership agreement stated otherwise... which often it will.

If you were smart, you would have purchased into an entity and not under personal names / tenants in common. Probably best would be a LLC, possibly an S-Corp and I actually prefer a Land Trust often combined with a LLC. These entities would have a defined ownership percentages of not only cost to acquire but also division of profits or losses at sales, responsibilities at all points of the transaction existence and definition of individual beneficial ownership tax responsibility.

In the Land Trust, usually each individual beneficial owner is responsible for their percentage of the tax consequents. They are given a 1099 at year end and they use that with their own personal tax situation. If the entity has tax consequences it would pay them according to how you have that entity set up and what type it is.

If you do not fully understand these items, you should consult a CPA that is familiar with real estate investment transactions. This WILL NOT include MOST CPA's.... although almost everyone will Tell you They are qualified and knowledgeable. Get references from other investors and you will be far ahead of the game and will have far greater returns in your pocket with far less worry.

After you do this a couple of years, you can try to do your own taxes if you feel comfortable with it, but I still have mine done by a professional and use my knowledge to review it. Far easier to make a few adjustments / clarifications than develop the entire thing.

Besides, if your an investor, you can earn more doing what you do best rather than attempting to work your taxes from scratch.