Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Estates reporting of Personal Representative fee

smfesq
Level 2

Is an Estate required to file Form 1099MISC to report the Personal Representatives fee, which is subject to income tax on the PR's 1040?

This discussion has been locked. No new contributions can be made. You may start a new discussion here

2 Comments 2
Accountant-Man
Level 13

It depends if the Estate is operating a trade or business. The answer is usually NO. If it operating a trade or business, I would say YES.

** I'm still a champion... of the world! Even without The Lounge.
bensnead
Level 2

a bit late now, but of course you need to send a 1099-Misc. As you said, it is taxable income to the Personal Representative, so without sending a 1099-Misc, the IRS has no way to know about that income that the PR received.  This is an expense on the 1041 form of the estate.  

I was searching this subject trying to see if anyone has deal with the PR then taking expenses against that income, in a situation where the PR is not a "professional PR". Thus, the income to the PR is taxable, but not subject to self-employment taxes. It is just federal taxable income (Misc Income, line 8 of Schedule 1). But the PR can still have expenses, right?  In fulfilling your duties as PR, you might travel.  Do I just net these expenses against the Misc Income, line 8 of Schedule 1 amount???