Are trustee fees subject to self-employment tax?

March 20, 2006

From:  Sharon
Date:  Sat, 18 Feb 2006

Dear Mr. Gray:

Do you have a citation that says fees received by a non-professional fiduciary aren't subject to self-employment tax?

Thanks for your help,
Sharon

Answer

Date:  Mon, 06 Mar 2006

Hello Sharon,

Revenue Ruling 58-5. If the trustee is actively involved in operating a business for the trust, the fees can be self-employment income. In most cases, they aren't.

Good luck!
Mike Gray

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