Executor&personal representative fees

[sea-tax]

I think I know the answer just looking for some confimation, my mind has drawn a blank.

My client is the executor and personal rep for his fathers estate. He got a check for 15000 from the estate account for his services as executor.
This is his only income along with 22 dollars of interest income. He is not in the profession of being an executor this is a one time event.

It is my understanding that this income is taxable but not subject to Se tax because he is not a professional executor. It is also my understanding that this income would go on line 21 other income on form 1040 with a description of Executor Fees or something to that effect.

If anyone could reassure me or offer other advice that would be splendid. Again thanks ahead of time.

[Larmil]

See TTB 3-19

I think I know the answer just looking for some confimation, my mind has drawn a blank.

My client is the executor and personal rep for his fathers estate. He got a check for 15000 from the estate account for his services as executor.
This is his only income along with 22 dollars of interest income. He is not in the profession of being an executor this is a one time event.

It is my understanding that this income is taxable but not subject to Se tax because he is not a professional executor. It is also my understanding that this income would go on line 21 other income on form 1040 with a description of Executor Fees or something to that effect.

If anyone could reassure me or offer other advice that would be splendid. Again thanks ahead of time.

Those fees do go on line 21 and are not subject to SE tax.

[sea-tax]

thanks Larmil I appreciate the quick response.

One more question Does it matter what I list as the Description? I mean can I use Executor FEES or Personal Rep Fees?

My thought is that it doesn't matter .

[Larmil]

thanks Larmil I appreciate the quick response.

One more question Does it matter what I list as the Description? I mean can I use Executor FEES or Personal Rep Fees?

My thought is that it doesn't matter .

It shouldn't matter. If your client was appointed executor then I would say 'executor fees'. Otherwise I would say 'personal representative fees'.

[Gene V]

I agree with Larmil, if you want some reference, you can look at Pub. 559 page 3,
Fees Received by Personal Representatives.
For a nonprofessional executor or administrator, self-employment tax only applies if a trade or business is included in the estate’s assets, the executor actively participates in the business and the fees are related to operation of the business.

[sea-tax]

Larmil and Gene thank you both for the advice.