Executor Fees

[Yardley CPA]

Kindly verify that an individual who receives executor fees (no extensive managerial activities and there is no trade or business associated with the Estate) who is not in the business of being an executor, would simply report the income on Line 21 of the 1040 as Other Income and not on Schedule C?

[Lion EA]

Agree.

[kcjenkins]

That is correct. From the IRS:

Fees Received by Personal Representatives

All personal representatives must include in their gross income fees paid to them from an estate. If paid to a professional executor or administrator, self-employment tax also applies to such fees. For a nonprofessional executor or administrator (a person serving in such capacity in an isolated instance, such as a friend or relative of the decedent), self-employment tax only applies if a trade or business is included in the estate's assets, the executor actively participates in the business, and the fees are related to operation of the business.

And from Pub 17, p.88 under personal representative. “if you are not in the business of being an executor report these fees on line 21. if you are in the business of being an executor, report these fees as self-employment income”…so to answer your question, no se tax.

[Yardley CPA]

Agree.

Thank you.