Tennessee Municipal/County taxes

[Carlos]

I have a question for someone who is familiar with Tennesse local taxes. When filing Form BUS 415 or BUS 416, does a real estate agency include commissions paid to Realtors in gross income they report?

[Snaggletooth]

Please Clarify

Carlos, are you talking about filing a 416 for a real estate agency?

If so, you must report gross sales receipts. What the agency pays out to agents is not a factor.

If you are talking about an agent (as opposed to an agency), the gross receipts are what the agent has received. This may be optional about an agent having to file one, but I would do so to avoid possible recharacterization as an employee. The tax is deductible.

This is really nothing new. There used to be a "Gross Receipts" tax associated with getting a privelege license at the local city or county tax office. The State took over because they felt like the local subdivisions were too lax on assessing and collecting the Gross Receipts tax.

Essentially, these Tennessee forms should be "married" to the receipts on a Sch C, or equivalent sales on other entities.

[Carlos]

Thanks

Carlos, are you talking about filing a 416 for a real estate agency?

If so, you must report gross sales receipts. What the agency pays out to agents is not a factor.

If you are talking about an agent (as opposed to an agency), the gross receipts are what the agent has received. This may be optional about an agent having to file one, but I would do so to avoid possible recharacterization as an employee. The tax is deductible.

This is really nothing new. There used to be a "Gross Receipts" tax associated with getting a privelege license at the local city or county tax office. The State took over because they felt like the local subdivisions were too lax on assessing and collecting the Gross Receipts tax.

Essentially, these Tennessee forms should be "married" to the receipts on a Sch C, or equivalent sales on other entities.

That is what I needed to know. The state finally responded to my inquiry. They said the burden fell on the agency. Either the agency or agents could pay, but ultimately the agency was responsible.