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Estate Administrator Fee/Income
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Kathleen Martin
Feb 7, 2012, 1:49:15 PM2/7/12
to
Question: I received a one-time fee for administering my deceased
father's estate. All the info I have found clearly says this is
reported on 1040 Line 21 as "Other Income."
However, I also have some out-of-pocket expenses against that one-time
income -- travel mileage, postage, phone, supplies -- and do not know
where I reduce this sort of other income by my expenses.
Form 8903 does NOT seem the right place (and it is absurdly dense/
confusing). Can I just put a "net" total other income on Line 21? If
not, where do I show these minimal expenses on a sensible form for
that? Thanks in advance!
--
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<< that may be imposed upon the taxpayer. >>
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father's estate. All the info I have found clearly says this is
reported on 1040 Line 21 as "Other Income."
However, I also have some out-of-pocket expenses against that one-time
income -- travel mileage, postage, phone, supplies -- and do not know
where I reduce this sort of other income by my expenses.
Form 8903 does NOT seem the right place (and it is absurdly dense/
confusing). Can I just put a "net" total other income on Line 21? If
not, where do I show these minimal expenses on a sensible form for
that? Thanks in advance!
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Arthur Kamlet
Feb 7, 2012, 7:44:33 PM2/7/12
to
In article <95af5b9e-b250-4be2...@t15g2000yqi.googlegroups.com>,
estates. So the payment you received for that work goes on Line 21
and the allowed expenses on Scheddule A Line 23.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
Kathleen Martin <kat...@gmail.com> wrote:
>Question: I received a one-time fee for administering my deceased
>father's estate. All the info I have found clearly says this is
>reported on 1040 Line 21 as "Other Income."
>
>However, I also have some out-of-pocket expenses against that one-time
>income -- travel mileage, postage, phone, supplies -- and do not know
>where I reduce this sort of other income by my expenses.
>
>Form 8903 does NOT seem the right place (and it is absurdly dense/
>confusing). Can I just put a "net" total other income on Line 21? If
>not, where do I show these minimal expenses on a sensible form for
>that? Thanks in advance!
You seem not to be a person in the trade or business of administering
>Question: I received a one-time fee for administering my deceased
>father's estate. All the info I have found clearly says this is
>reported on 1040 Line 21 as "Other Income."
>
>However, I also have some out-of-pocket expenses against that one-time
>income -- travel mileage, postage, phone, supplies -- and do not know
>where I reduce this sort of other income by my expenses.
>
>Form 8903 does NOT seem the right place (and it is absurdly dense/
>confusing). Can I just put a "net" total other income on Line 21? If
>not, where do I show these minimal expenses on a sensible form for
>that? Thanks in advance!
estates. So the payment you received for that work goes on Line 21
and the allowed expenses on Scheddule A Line 23.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
Message has been deleted
Stuart A. Bronstein
Feb 8, 2012, 5:14:19 PM2/8/12
to
kam...@panix.com (Arthur Kamlet) wrote:
> Kathleen Martin <kat...@gmail.com> wrote:
>>Question: I received a one-time fee for administering my
>>deceased father's estate. All the info I have found clearly says
>>this is reported on 1040 Line 21 as "Other Income."
>>
>>However, I also have some out-of-pocket expenses against that
>>one-time income -- travel mileage, postage, phone, supplies --
>>and do not know where I reduce this sort of other income by my
>>expenses.
>>
>>Form 8903 does NOT seem the right place (and it is absurdly
>>dense/ confusing). Can I just put a "net" total other income on
>>Line 21? If not, where do I show these minimal expenses on a
>>sensible form for that? Thanks in advance!
>
> You seem not to be a person in the trade or business of
> administering estates. So the payment you received for that
> work goes on Line 21 and the allowed expenses on Scheddule A
> Line 23.
She was in the trade or business for several months for the purpose
> Kathleen Martin <kat...@gmail.com> wrote:
>>Question: I received a one-time fee for administering my
>>deceased father's estate. All the info I have found clearly says
>>this is reported on 1040 Line 21 as "Other Income."
>>
>>However, I also have some out-of-pocket expenses against that
>>one-time income -- travel mileage, postage, phone, supplies --
>>and do not know where I reduce this sort of other income by my
>>expenses.
>>
>>Form 8903 does NOT seem the right place (and it is absurdly
>>dense/ confusing). Can I just put a "net" total other income on
>>Line 21? If not, where do I show these minimal expenses on a
>>sensible form for that? Thanks in advance!
>
> You seem not to be a person in the trade or business of
> administering estates. So the payment you received for that
> work goes on Line 21 and the allowed expenses on Scheddule A
> Line 23.
of that one estate. Why couldn't she use a Schedule C?
On the other hand, out of pocket costs should have been paid by the
estate. And reimbursements should not be taxable to OP.
___
Stu
http://DownToEarthLawyer.com
Mark Bole
Feb 8, 2012, 8:48:06 PM2/8/12
to
On 2012/02/08 14:14, Stuart A. Bronstein wrote:
> kam...@panix.com (Arthur Kamlet) wrote:
>> Kathleen Martin<kat...@gmail.com> wrote:
>
>>> Question: I received a one-time fee for administering my
>>> deceased father's estate. All the info I have found clearly says
>>> this is reported on 1040 Line 21 as "Other Income."
>>>
>>> However, I also have some out-of-pocket expenses against that
>>> one-time income -- travel mileage, postage, phone, supplies --
>>> and do not know where I reduce this sort of other income by my
>>> expenses.
>>>
>>> Form 8903 does NOT seem the right place (and it is absurdly
>>> dense/ confusing). Can I just put a "net" total other income on
>>> Line 21? If not, where do I show these minimal expenses on a
>>> sensible form for that? Thanks in advance!
Form 8903 is for Domestic Production Activities Deduction. Did you mean
> kam...@panix.com (Arthur Kamlet) wrote:
>> Kathleen Martin<kat...@gmail.com> wrote:
>
>>> Question: I received a one-time fee for administering my
>>> deceased father's estate. All the info I have found clearly says
>>> this is reported on 1040 Line 21 as "Other Income."
>>>
>>> However, I also have some out-of-pocket expenses against that
>>> one-time income -- travel mileage, postage, phone, supplies --
>>> and do not know where I reduce this sort of other income by my
>>> expenses.
>>>
>>> Form 8903 does NOT seem the right place (and it is absurdly
>>> dense/ confusing). Can I just put a "net" total other income on
>>> Line 21? If not, where do I show these minimal expenses on a
>>> sensible form for that? Thanks in advance!
some other form?
>>
>> You seem not to be a person in the trade or business of
>> administering estates. So the payment you received for that
>> work goes on Line 21 and the allowed expenses on Scheddule A
>> Line 23.
>
> She was in the trade or business for several months for the purpose
> of that one estate. Why couldn't she use a Schedule C?
pay self-employment (SE) tax of over 13% (normally 15.3%) if she wasn't
truly self-employed? She doesn't meet any of the exceptions to SE tax
for Schedule C filers.
> On the other hand, out of pocket costs should have been paid by the
> estate. And reimbursements should not be taxable to OP.
to herself for not reimbursing herself from the estate. But if in fact
the estate didn't reimburse her, then I think she's stuck with the
limited expense deduction on Schedule A.
--
Mark Bole
EA in CA
makbo at pacbell dot net
Message has been deleted
Gene E. Utterback, EA, ABA
Feb 9, 2012, 1:47:04 PM2/9/12
to
>"Stuart A. Bronstein" wrote in message
>news:Xns9FF390BF5FE4Bs...@130.133.4.11...
executor or personal rep because she doesn't do it on a "regular and
continuous basis." The ONLY reason she did it in this case was because of
her close relationship. THAT makes it an entirely different situation.
NOW, if she acted as a personal rep for strangers, much the way accountants
and attorneys take on work for non-friends or non-family members, THEN she'd
be in a trade or business.
>On the other hand, out of pocket costs should have been paid by the
>estate. And reimbursements should not be taxable to OP.
Agreed - and this may be nothing more than fixing the book entries by
rebooking payment to her that were for expenses as expenses and NOT as
payments to her. That way the books reflect that only the payments to her
were for fiduciary fees and the other payments to her for reimbursements.
As a side note, and one of my pet peeves - this is exactly what happens in
most DIY cases. Someone, with the best of intentions, does a job in
half-hearted manner, resulting in confusion and ugly records that can easily
wind up costing several times more than the professional fees had
professional help been retained at the start.
Gene E. Utterback, EA, RFC, ABA
>news:Xns9FF390BF5FE4Bs...@130.133.4.11...
>
>She was in the trade or business for several months for the purpose
>of that one estate. Why couldn't she use a Schedule C?
I respectfully disagree - she was NOT in the trade or business of being an
>She was in the trade or business for several months for the purpose
>of that one estate. Why couldn't she use a Schedule C?
executor or personal rep because she doesn't do it on a "regular and
continuous basis." The ONLY reason she did it in this case was because of
her close relationship. THAT makes it an entirely different situation.
NOW, if she acted as a personal rep for strangers, much the way accountants
and attorneys take on work for non-friends or non-family members, THEN she'd
be in a trade or business.
>On the other hand, out of pocket costs should have been paid by the
>estate. And reimbursements should not be taxable to OP.
rebooking payment to her that were for expenses as expenses and NOT as
payments to her. That way the books reflect that only the payments to her
were for fiduciary fees and the other payments to her for reimbursements.
As a side note, and one of my pet peeves - this is exactly what happens in
most DIY cases. Someone, with the best of intentions, does a job in
half-hearted manner, resulting in confusion and ugly records that can easily
wind up costing several times more than the professional fees had
professional help been retained at the start.
Gene E. Utterback, EA, RFC, ABA
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