Identify which of the following statements is true.
A)Income in respect of a decedent (IRD)is the gross income the decedent earned before death but had not collected before death.
B)An estate may deduct up to $5,000 of capital losses against the ordinary income taxable in the estate.
C)An example of income in respect of a decedent (IRD)is the gain recognized on property sold by the estate after the decedent's death.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Income in respect of a decedent (IRD) refers to income that was earned by a decedent prior to their death but was not received and thus not included on their final tax return. This can include salaries, bonuses, commissions, and other forms of earned income that were due to the decedent but not paid before their death.

Identify Which of the Following Statements Is True