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As a realtor, you're likely considered self-employed. When you pay another agent for their services, it's typically considered a business expense. You'd record these payments as expenses in your bookkeeping system, which would then be deducted from your income on your Schedule C when you file your taxes.

As for issuing a 1099, if you paid the other agent $600 or more in a year for their services, you generally need to issue them a Form 1099-NEC. This form reports nonemployee compensation. You'd send one copy to the IRS, one copy to the agent, and keep one for your records. However, if the agent is incorporated (like an S Corporation or C Corporation), you typically don't need to issue a 1099.

Remember to keep detailed records of all transactions and consult with a tax professional if you're unsure about anything.