1. Items which could be considered "income in respect of a decedent" (IRD) include which of the following?

I. Installment sale payments
II. IRA distributions not yet taken
III. Rental income not collected
IV. Annuity lottery winnings

A) I and II only
III and IV only
I, III and IV only
D) I, II, III and IV

2. Which of the following are TRUE statements concerning IRD income?

I. The IRD is not included in the gross estate if the property is passed under the marital deduction.
II. IRD income is tax-exempt if received six or more months after death.
III. The IRD recipient may be able to take a tax deduction on their individual tax return if the estate tax return already paid taxes on the income.
IV. IRD income is included in the gross estate of the decedent if possible.

A) I and II only
III and IV only
II, III and IV only
D) All of the above

3. What happens to IRD income after the estate tax return and the decedent's final income tax returns have been filed?

A) After six months the income is tax-exempt.
The spouse is required to file a gift tax return for the income until it stops.
The beneficiary of the income must include it on their individual tax return.
D) The executor files the income on an annual income tax return of the decedent, Form 2706 until the income creases to be paid.

Answer Key

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