Identify which of the following statements is false.
A)Federal estate taxes related to income in respect of a decedent (IRD)is deductible by the estate in the year the IRD is includible in the estate's gross income.
B)An example of deductions in respect of a decedent (DRD)are property taxes that accrued prior to the decedent's death but were not paid until after death.
C)Items of IRD receive a step-up in basis as a result of the decedent's death.
D)Interest earned but not received before death is IRD.

Question

Quizplus · Accepted Answer

Items of IRD do not receive a step-up in basis as a result of the decedent's death. Instead, the recipient of the property includes the IRD in gross income and takes a basis in the property equal to its fair market value at the time of receipt.

Identify Which of the Following Statements Is False