“Commission Rebates in 2026: Cut Your Fee, Don’t Cut a Check“
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You want to win clients by giving them a break on your commission. How you hand over that break — a check or a smaller fee — can quietly change your tax result.
One approach leaves you with nothing to deduct, nothing to substantiate, and nothing to explain. The other leans on a ruling the IRS has had partly suspended for roughly two decades.
About 10 states prohibit commission rebates outright, and illegal payments are generally not deductible for federal income tax purposes.
To get the full story don’t miss my latest issue of the Tax Reduction Letter.
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