An example of income in respect to a decedent (IRD) for a cash method of accounting taxpayer is

Question

Quizplus · Accepted Answer

All three choices are examples of income in respect to a decedent (IRD). IRD is income that a decedent was entitled to but had not yet received before their death. For a cash method of accounting taxpayer, income is generally recognized when received. Therefore, income that the decedent was entitled to but had not received before death is considered IRD and is taxable to the decedent's estate or beneficiaries. Choice A represents salary earned but not received prior to death, choice B represents interest earned but not received prior to death, and choice C represents gain from an installment sale entered into before death.

An Example of Income in Respect to a Decedent (IRD)