A concession that is not paid by the Market Center and is paid by the associate is entered as a deduction.
If you have unapproved concessions where the market center is taking the full amount of company dollar, the concession should be entered as a deduction. It will come out after full company dollar and royalty are taken. It will be the associate’s responsibility to file this as a valid business expense on his or her tax return.
Each market center is responsible for establishing its policies and procedures around Concessions, presenting them for approval by the ALC, adding them to the local Policies & Guidelines, and training their associates in the application of concessions. Typically the principal/supervising/managing broker or broker-in-charge is authorized to approve or deny concession requests.