1. D

All of the following would be considered income that is still owed to the decedent; therefore, they would all qualify as an IRD.

2. B

IRD income is included in the gross estate of the decedent. If the estate tax is paid on the IRD income in the decedent's estate tax return, then the beneficiary of the IRD income can take a tax deduction on their individual return on Schedule A as a deduction NOT subject to the 2% miscellaneous itemized deduction.


The beneficiary of the IRD income must continue to report the income and pay any tax due.


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