CFP

AAA

Income In Respect Of A Decedent - Answer Key

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.

3.
C

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

Introduction
comments powered by Disqus
Related Articles
  1. Fee-Only Financial Advisers: What You ...
    Investing Basics

    Fee-Only Financial Advisers: What You ...

  2. Another Sound Lesson In Risk Management
    Investing News

    Another Sound Lesson In Risk Management

  3. Choosing The Right ETF Index To Reach ...
    Investing News

    Choosing The Right ETF Index To Reach ...

  4. Using Normal Distribution Formula To ...
    Investing Basics

    Using Normal Distribution Formula To ...

  5. Hypothesis Testing in Finance: Concept ...
    Active Trading Fundamentals

    Hypothesis Testing in Finance: Concept ...

Trading Center