Starting Your Business/recordkeeping
What are Business Expenses
Commissions
If you must pay a bonus, percentage,
or other type of commission to direct sellers working under
you, you can deduct the amount you pay. Report the full
amount of any commissions you receive as business income,
and deduct the commissions you pay out as ordinary and necessary
business expenses.
Important References:
Publication
911
Direct Sellers
Form
1040 Schedule C
Profit or Loss from Business