Lender · Yorba Linda, CA · Member since 2014 · 68 posts · 20 votes
Quick question. Should I be getting a W9 from a wholesaler that I started working with? We did an assignment agreement but wanted to know if I should be sending a W9 as well.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
12y
Agreed with Wayne...though I'll add that if the fee was paid at closing (on the HUD-1), you wouldn't need to 1099 the wholesaler, as the fee technically would be coming from the closing agent who disbursed the funds.
Investor · Charleston, SC · Member since 2018 · 32 posts · 34 votes
5y
Hey @J Scott I know this is from ages ago but does the fee on the HUD-1 paid at closing necessitate the wholesaler receives a 1099 from the closing attorney / escrow agent?
Hey @J Scott I know this is from ages ago but does the fee on the HUD-1 paid at closing necessitate the wholesaler receives a 1099 from the closing attorney / escrow agent?
I'm not a tax attorney (or any type of tax or legal professional), so I don't know the *technical* answer to that question. But, I have certainly seen title companies send 1099s to those who have appeared on the settlement statement receiving more than $600.
Is it required? I'm not sure. It's certainly not required if the receive is an incorporated business entity. But, otherwise, I don't know if the IRS requires this reporting or not.