Personal Representative of deceased's estate..

[AZ-Tax]

This Personal Representative received compensation for the duties of the PR. No 1099-Misc, No W-2, no tax docs what so ever was issued to this PR but PR was told its taxable income subject to SE tax, Fed and State income tax. If so can this PR file a Sch C and deduct aganist the gross any unreimbursed expenses related to the duites of the PR? One that came to mind was using the home to perform the duties. Another mileage.

[newbie]

Personal Representative fees are not subject to SE tax. It is line 21 miscellaneous income.

[AZ-Tax]

Newbie, is Sch C an option?

The Personal Representative may have quite bit of unreimbursed related expenses.

[Jesse]

I would think a schedule C would only be an option if the person was in the business, that is a personal rep for more than one person.

Like a hobby, I think you would report income on line 21 and expenses schedule A Miscellaneous deductions.

[Larmil]

P.p.p.p.

I would think a schedule C would only be an option if the person was in the business, that is a personal rep for more than one person.

Like a hobby, I think you would report income on line 21 and expenses schedule A Miscellaneous deductions.

I agree. I stress to my clients to have ALL expenses reimbursed in these situations.

[Burke]

You are exactly right. Personal Representative should have been reimbursed all expenses related to administration of estate out of estate monies prior to distributions to benes. So there would be no deductions if this were done. Fiduciary fees go on line 21, not subj to SE. "Expenses for use of the home" would be a stretch.