USA: Preparing 1099 Reports
Loft47 does not file your 1099 tax reporting, we provide the information not the filing mechanism to file forms either digitally or paper based. We recommend Track1099 or Tax1099 to complete the IRS filing, or send the information to your accountant to complete the filling. The IRS introduced 1099NEC in 2020, so there's been some changes in your Brokerage's Settings that will need to be adjusted for reporting going forward.
Tax Settings
Turn on your reporting by adding the year(s) in the Allowed Tax Years field.
Enter your Threshold amount in Tax Reporting Threshold field.
Set your Other Income/Mentor Fee Income reporting
All Commission income reports in Box 1 on your 1099NEC forms. However, you can choose to omit/report Other income, Mentor Fee Income by deselecting/selecting their checkboxes on your Brokerage's settings.
Reports>Tax Returns
Reporting options have changed in Loft, both your PDF & CSV files will now include inactive agents but you will need to add the option to report Outside Brokerages, to do so, select the option in your Tax Returns Report. Please note, government filing requires Tax IDs, so if you are reporting for Outside Brokers you'll need to add their Tax IDs into their org profiles.
First Year setup
In your first year with Loft, please review the following information and update us as soon as possible:
Company/Brokerage business tax number
Enter this on the Brokerage page, click Edit, enter # into the Tax ID field, save your changes.
Agent & Company Tax Numbers
Ensure your Agents, Agent's Organizations, and Outside Brokerages have their tax id/business #'s are present in their respective profiles, for more information regarding this, read here.
Commissions Reported NET or GROSS
When setting up your fees during onboarding, we always default (unless directed otherwise) to set your deductions/fees to NOT net out Gross Commission incomes. You can change how your deductions are reported, to learn more, read about it here.Related Articles
Agent & Outside Brokerage auditing for tax reporting
Scouring through your Brokerage's people's page to check each agent, their organization, and Outside Brokerage profile(s) are up to date can be daunting. The easiest way is to head to Reports> Tax Returns Report, choose the year you're reporting ...Mid Year/Year End Commission & Deduction adjustments
When switching Back office software Mid year we require to add ytd adjustments for agents commissions, production and fee information in order to have accurate 1099 and T4A information. This is also the case for agent's switching from being payable ...Canada: Preparing T4A Reports
** Loft47 generates information to create T4A information, we do not file this information with CRA. See filing information here. Tax Settings Turn on your reporting by adding the year(s) in the Allowed Tax Years field. Enter your Threshold amount in ...Adjusting your tax settings
Adding/Updating Brokerage Tax ID Head to your Brokerage menu (the menu with the gear cog), click Edit Settings Add/update your Brokerage's Tax ID Turning on Tax Reporting In your Brokerage Menu>Settings, scroll down to the Allowable tax year field ...Agent Tax IDs and Organization Business Tax Numbers
From the Tax Return report, you can export a CSV file to review people and companies that may be missing their Tax IDs. Agent Tax ID If an Agent is paid to their own name, you'll use the Tax ID (SSN for US clients, and SIN for CAN clients) on their ...