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Author Referral Fee involving a family member
nilknarf

2006-02-01, 6:21 pm

I'm an agent in South Carolina. My sister in North Carolina is about
to sell her home and buy another. I'd like her to benefit from my
ability to obtain a referral fee without actually profiting from it
myself. I could just give her a Christmas cash gift of whatever the
referral fee is, less the income taxes I have to pay. But is there a
simpler way to do this? Could I ask the agent to give her a Lowes Gift
Certificate that would approximate the amount of the referral? Just
want to make sure I keep things legal. TIA for any advice.

Frank

Doug Patterson

2006-06-29, 9:25 am

nilknarf wrote:
> I'm an agent in South Carolina. My sister in North Carolina is about
> to sell her home and buy another. I'd like her to benefit from my
> ability to obtain a referral fee without actually profiting from it
> myself. I could just give her a Christmas cash gift of whatever the
> referral fee is, less the income taxes I have to pay. But is there a
> simpler way to do this? Could I ask the agent to give her a Lowes Gift
> Certificate that would approximate the amount of the referral? Just
> want to make sure I keep things legal. TIA for any advice.
>
> Frank
>

Just read this now, so it may be too late.

Avoid the referral fee problem entirely. The easy thing to do, assuming
you have referred her to a NC agent, is to ask the NC agent to reduce
his commission instead of paying you a referral fee. That way your
sister gets the benefit, and you don't pay income tax on the referral
fee (since you don't get one).

Doug
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