Is an inheritance taxable if I am also the executor?

Question

Right now, I am serving as executor and may receive a fee for the work in addition to my inheritance. Right now, I want to keep the compensation, reimbursements, and beneficiary distribution clearly separated for tax purposes. My records include statements, appraisals, or tax forms with conflicting dates and values, and I am trying to determine which document should drive the calculation.

Soradin · Accepted Answer

The inheritance and the executor fee are treated differently, so records should separate the two amounts. When preparing the return, executor and personal representative fees are generally taxable compensation to the recipient, even when the recipient is also an heir. Federal and state systems are separate, so the executor or beneficiary should check the current rules that apply in NM and any other state connected to the estate.

Is an inheritance taxable if I am also the executor?

Soradin

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