How to Record Broker Referral Fees
Recording commissions paid to external real estate brokers for successful tenant referrals.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Brokerage Commission Expense | Expense | 2,200.00 | - |
| Cash | Asset | - | 2,200.00 |
💡 Accountant's Note
Payments made to external brokers for referring tenants are typically expensed immediately unless the policy requires capitalization as lease acquisition costs.
Practitioner & Systems Framework
💻 ERP Architecture
Track as a marketing expense or lease acquisition cost based on GAAP/IFRS preference.
⚠️ Audit Flags
Payments to unlicensed individuals for brokerage services.
📄 Required Documentation
Broker invoice and 1099-NEC information for the payee.
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