Validating your Agents 1099/T4A's against their YTD totals
Validating your agent's ytd totals for reporting
Depending on how you're reporting, see this article for more info on the various types of Income reporting available, you can validate your agent's income by comparing your Agent's profile YTD totals against their tax return form.
Reporting Gross Commission Income - Deductions do not net out GCI
The formula we use to report GCI is as follows: Commission Net + Other Income Net + Mentor Fee Net. Please note, the sum of all these will only be reported on T4A's & 1099NEC depending on the Other's income settings you chose when setting your brokerage's tax settings, refer to this article for more information.
Tax applicable clients - Canadian and US client, where state taxes are applicable, state or provincial taxes are NOT reported on your respective tax forms.
Reporting NET Commission Income - Deductions do net out GCI
The formula we use to report NCI is as follows: Commission Net + Other Income Net + Mentor Fee Net LESS Deduction Net
Depending on what deductions you've set to reduce your Agent's GCI, the amount you will be comparing to will differ. If you've set some of your deductions to reduce your Agent's GCI, then you will have to consider those deductions you've set to reduce income into the formula above. Example below, the agent's split fees is the only fee set to reduce his Commissions, so the formula is as follows:
1 Commission Net of $7,500 + 2 Other Income Net of $0 + 3 Mentor Fee Income Net $200 - 4 Split Fee Amount $500= $7,200
If Mentor Fee income was not selected in your Brokerage settings, then omit 3 from the formula and $7,000 would be reported.
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 ...
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 ...
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 ...
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 ...