What guidelines must be followed to classify a transaction as associated with the principal of an estate or as an income transaction?

Question

Quizplus · Accepted Answer

The classification of a transaction as associated with the principal of an estate or as an income transaction depends on the decedent's intentions or state laws. There is no specific guidance provided by generally accepted accounting principles, federal estate laws, or the Internal Revenue Code, but state estate laws may provide some direction. Ultimately, the intentions of the decedent, as expressed in estate planning documents or through state law, will govern the treatment of estate transactions.

What Guidelines Must Be Followed to Classify a Transaction as Associated