Catherine Posted February 20 Report Share Posted February 20 Just found out the Executor of an estate was paid $10,000 from the estate (huge amounts of work; frankly it's low), and now I need to get a 1099 out pronto. 1099-NEC, subject to SE tax? Or 1099-MISC? Or something else entirely? Executor is NOT in the business of administering estates for fun and profit. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 20 Author Report Share Posted February 20 And yes, I've already looked it up at IRS dot gov, and got all manner of interesting tidbits but nothing about executors, trustees, personal reps, or the like. Directors, yes. Whistleblowers, yes. Post-death wages, yes. And many others, too, but not trust or estate administration. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 20 Report Share Posted February 20 11 minutes ago, Catherine said: and now I need to get a 1099 out pronto. Not required. The payment was not related to a trade or business of the estate; but instead to the admin of the estate. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 20 Author Report Share Posted February 20 But the executor still needs to report the income, yes? Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted February 20 Report Share Posted February 20 From Pub 559: Fees Received by Personal Representatives All personal representatives must include fees paid to them from an estate in their gross income. If you aren't in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Schedule 1 (Form 1040), line 8z. If you are in the trade or business of being an executor, report fees received from the estate as self-employment income on Schedule C (Form 1040), Profit or Loss From Business. If the estate operates a trade or business and you, as executor, actively participate in the trade or business while fulfilling your duties, any fees you receive related to the operation of the trade or business must be reported as self-employment income on Schedule C (Form 1040). 2 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 20 Report Share Posted February 20 4 minutes ago, Catherine said: But the executor still needs to report the income, yes? Yes, but not subject to SE tax. You also do not 1099 accountants or attorneys unless directly related to a trade or business. 1 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 20 Author Report Share Posted February 20 Thank you all. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 20 Report Share Posted February 20 18 minutes ago, kathyc2 said: , any fees you receive related to the operation of the trade or business That would be the case if the PR was paid extra to operate the trade or business. If the PR fees are paid strictly as a percentage of the estate assets you would not allocate any amount to the operation of the business per RR 58-5. 1 Quote Link to comment Share on other sites More sharing options...
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