personal rep fee and expenses

[JenMO]

Personal rep fee was paid to client for his duties as pers rep of the estate. this client had mileage expenses for doing his job. I have put the fee down on line 21 (he is not in the business of being a pers rep) is there a place to take off the mileage exp?

[spanel]

Personal rep fee was paid to client for his duties as pers rep of the estate. this client had mileage expenses for doing his job. I have put the fee down on line 21 (he is not in the business of being a pers rep) is there a place to take off the mileage exp?

Not if you list the income on line 21.

Chris

[JenMO]

ok, I don't want to file sch c, makes it subject to SE. didn't know about line 36

[spanel]

ok, I don't want to file sch c, makes it subject to SE. didn't know about line 36

No Sch C, no expenses to offset it.

Chris

[JenMO]

ok, done. always is something I'm not sure about, so I ask. thanks

[Lion]

He could ask the estate to reimburse him for out-of-pocket expenses and mileage....

[taxea]

why don't they qualify on Sch A subject to 2%

[spanel]

why don't they qualify on Sch A subject to 2%

Would that not be unreimbursed employee expenses? Since they are not an employee (no w2), No deduction?

Chris

[taxea]

okay I researched it. Expenses should be reimbursed by the estate.

[S T]

Yes the Estate/Trust should have reimbursed the mileage - travel expenses for Personal Rep

Not a schedule C and not unreimbursed employee business expenses - I had an audit 15 years ago or more, when I had filed a Sched C for income and expenses of a Trustee - and the IRS was not very happy about it. Basically stated the Trust should have reimbursed all expenses incurred by the Trustee.

Income is Line 21 not subject to SE

Sandy

[Burke]

Personal rep fee was paid to client for his duties as pers rep of the estate. this client had mileage expenses for doing his job. I have put the fee down on line 21 (he is not in the business of being a pers rep) is there a place to take off the mileage exp?

If an executor's/personal representative's "fee" was paid, then it is usually based on a percentage of the estate's/trust's assets. You would NOT then reimburse also for certain expenses like mileage. That is what the fee is for, and only if no fee is paid then would you reimburse for actual expenses. The fee is taxable but not subject to SE tax and is shown on Line 21 under Other Income. Reimbursement of expenses only would not be taxable to the exec/trustee.