How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Attorney
Category: Estate Law
Satisfied Customers: 54720
Experience:  29 years of experience practicing law, including tax and estate planning.
17027240
Type Your Estate Law Question Here...
Richard is online now
A new question is answered every 9 seconds

Does a person who is an heir of an estate, who is also the

Customer Question

Does a person who is an heir of an estate, who is also the administrator of that estate and receives additional compensation for the administration, have to declare the administration fee as self-employment income?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Richard replied 1 year ago.

Good afternoon. My name is ***** ***** I look forward to helping you.

Generally, the answer is no. Although the compensation is taxable income, it is reported as non-employee compensation on line 21 of your individual tax return, IRS Form 1040 and not subject to self-employment income. The exception is if you are in the trade or business of being an executor; if so, you report executor fees as self-employment income on Schedule C or Schedule C-EZ. This applies if you are an attorney or accountant and serve as an executor or estate administrator in the normal course of your business. This is set forth in IRS Revenue Ruling 58-5: http://dsbcpas.com/databases/rev_rul/revrul58-5.html

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!