Parent passes away,son is tasked to close up the estate. Son received $10k for his efforts. Since this is family, would son need to claim this as income?

SwimDad · ‎12-07-2019

Father passes away and oldest son is tasked will closing accounts, selling house, etc. Trust is to pay him $10k so he writes himself a check. Since this involves a transaction with in the family does my tax client need to claim this as income on his return? If so, assume line 21 on Schedule 1 would be the place to do it or is there a better methods?

IRonMaN · ‎12-07-2019

"$10k for his efforts"

You do indeed have income. But the good news is, unless he is in the business of handling estates, it isn't subject to SE tax so you can report it as other income.

Slava Ukraini!

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Just-Lisa-Now- · ‎12-07-2019

Just had one in today, same thing, son got paid 10K for being the trustee and take care of everything....the trust tax preparer issued a 1099MISC with the 10K in Box 7 ugh!...they also gave him a copy of the 1096 (weird)...I put it on Sch C and took it back off, and put it in Line 21 as other income.

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