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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121319  
Subject: Executor fees Date: 1/26/2009 11:43 AM
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Are hourly fees received by an executor considered
taxable income ?

thanks
rad
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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 103977 of 121319
Subject: Re: Executor fees Date: 1/26/2009 11:59 AM
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Are hourly fees received by an executor considered
taxable income ?


Yes, income taxable. Put on line 21 to avoid SE tax unless you are a pro, then it goes on Schedule C with SE.


ed

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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 103978 of 121319
Subject: Re: Executor fees Date: 1/26/2009 12:00 PM
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Yes, income taxable. Put on line 21 to avoid SE tax unless you are a pro, then it goes on Schedule C with SE.

Not a pro but otherwise self-employed so schedule C ?

rad

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 103980 of 121319
Subject: Re: Executor fees Date: 1/26/2009 12:19 PM
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Not a pro but otherwise self-employed so schedule C ?

No. You'd need Schedule C for it only if you carried on a trade or business of administering estates.

Phil

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 103981 of 121319
Subject: Re: Executor fees Date: 1/26/2009 12:30 PM
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Are hourly fees received by an executor considered
taxable income ?


Yes. They are reported on line 21 as other income. The IRS may try to assert that the income is subject to self-employment taxes, but unless the taxpayer is in the "business" of serving as an executor, it's only subject to income tax.

Ira

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 103982 of 121319
Subject: Re: Executor fees Date: 1/26/2009 12:36 PM
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Yes, income taxable. Put on line 21 to avoid SE tax unless you are a pro, then it goes on Schedule C with SE.

Not a pro but otherwise self-employed so schedule C ?


Only if the nature of your self-employment would reasonably include serving as an executor.

In general, you don't want your executor's fees to go to Schedule C because they will be subject to Medicare (2.9%) and possibly Social Security (12.3%).

Ira

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