Art's Antique Radios wrote:
- quote -

One last caveat, Art. Be careful and don't remember that
in this case (only) common sense won.

It ain't necessarily the case all the time.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 20 Mar 2005

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"Herb Smith" <smithff33[at]aol.com> wrote:
- quote -

thanks all

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Stuart A. Bronstein wrote:
- quote -

And thereby subject the "net profit" to self employment tax.

For a professional exeuctor, this is how it's done, but for
a one time non professional person it's not se income, there
fore goes on line 21.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 13 Mar 2005

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Art's Antique Radios wrote:

- quote -

Use IRS Pub 559 as your reference, not 525 (unless you are
in the business of being an executor.

- quote -

REIMBURSEMENT of your actual, out-of-pocket, expenses and
mileage is not taxable income.

The executor fee is taxable income, reported on Line 21 of
the 1040 form. If there is a business in the estate, you
have to report the fee on Schedule C and SE, but that is
rarely a concern.

- quote -

Common sense wins. See above and Pub 559.

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Art's Antique Radios wrote:

- quote -

The item you identify in #3 as "my fee" is reportable as
taxable income on Line 21 of Form 1040. The other two items
need not be reported as long as you accounted for the
expense by submitting some paperwork to the estate that
documented your expense and you were reimbursed for that
expense. Items 1 and 2 would fall into the expense
reimbursement category and not the taxable fee category.

--
Alan
http://taxtopics.net

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Art's Antique Radios wrote:

- quote -

You're right on the money. Only your fee goes on "other
income" line of page of 1040. (line 20? 21? I never can
remember. (grin))

ChEAr$,
Harlan Lunsford, EA n LA
Sat 12 Mar 2005

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"Art's Antique Radios" <art[at]myantiqueradio.com> wrote:

- quote -

Again, I don't do returns, so someone may come along with
better information. But my guess would be that you could
file a Schedule C, so that you would claim all you have
received, but deduct your expenses.

Stu

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"Art's Antique Radios" <art[at]myantiqueradio.com> wrote:

- quote -

Only the fee portion, on line 21. It's not subject to
self-employment tax.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Art's Antique Radios wrote:

- quote -

....

- quote -

Common sense in tax law?

My best guess is that the total amount you receive must be
included as miscellaneous income, and the part that
constitutes expense (and mileage) reimbursement is
deductible as a miscellaneous itemized deduction or as a
miscellaneous adjustment to income.

I haven't researched which -- I lean toward the latter

In the case of "paperwork" -- if the estate should have made
the payment directly to a third party, and the payment did
not benefit you (I'm trying to exclude your hotel bills here
-- perhaps others have a better wording?), then the fact you
made the payment and were reimbursed by the estate should
not have any tax consequences. I'm thinking of what would
normally be considered office or mailing expenses, here.

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In 2004 I was the Executor of my Father's estate. Nothing
big and all the tax returns were simple. My step-mother
received all estate proceeds.

However, I am now preparing my own 2004 tax return and I
must claim the fiduciary fees I received from the estate as
income.

The money I received was comprised of basically 3 pieces:
1) Actual reimbursement for hotels and paperwork, 2)
mileage at the .365 rate (my father lived out of state) and
3) my fee. (so many hours at x$ per hour). All was approved
by the attorney and the courts.

Publication 525 seems to indicate I need to claim as income
the entire 3 portions but it does not give me any place to
deduct the actual expenses.

Common sense tells me I only have to claim the fee portion.

Any advice?

Thanks

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