Personal rep fees

[jimmcg]

Should there be a 1099 sent to personal rep for an estate? What about the lawyer fee? Who sends? - the lawyer handling the estate, or the tax preparer filing the final return for the estate?

Only if it meets the definition of a trade or business. (professional fiduciaries, etc.)

[mastertaxguy]

If you ask 10 tax pros you likley will get 15 different answers. My answer is the fiduciary of the entity (estate, trust, whatever) is responsible if a 1099 is required. If the fiduciary is not a professioanl fiduciary, I have never issued on behalf of an estate a 1099: the amount paid shows up on the 1041, which lists the fiduciary and their SS#/EIN# likely was on the SS-4 form to get the estate's EIN. The amount is taxable as ordinary income (unless the fiduciary is in the business of being a fiduciary in which case it is taxable as self-employment income). If the fiduciary is an attorney, a 1099 from the estate showing the payment to the attorney is required for all services and amounts over $600.00. Unless the tax pro (you dear reader) is requested to do so, you do nothing in that regard.

Now on to the other 14+ answers.

[Kram BergGold]

My answer

I would say an estate is not required to file 1099 forms. It is not a business.

[JenMO]

Should there be a 1099 sent to personal rep for an estate? What about the lawyer fee? Who sends? - the lawyer handling the estate, or the tax preparer filing the final return for the estate?