Income with Respect to a Decedent

[Snaggletooth]

Affectionately known as "IRD". What kinds of income meet the criteria of IRD?

• CDs and other financial instruments which have not yet matured.
• IRAs and other retirement accounts
• Installment sales not completed at time of death
• Unpaid W-2 wages.

Anything else, assuming the above are correct???

[Lion]

A good starting point for your research is https://www.irs.gov/pub/irs-pdf/p559.pdf especially pages 9-12. Don't forget about Deductions in Respect of a Decedent.

[TAXNJ]

Also, another starting point is TTB 21-8. “.…Report IRD and income from assets received after death on the return of the recipient. See Income in Respect of Decedent (IRD), below .……”

[Snaggletooth]

Report IRD and income from assets received after death on the return of the recipient. See Income in Respect of Decedent (IRD), below [/QUOTE]

What if the income is not earned until after the death of the decedent? Should it not be reportable on Estate Income Return, Form 1041? This would not apply to wages since they were earned prior to death. Lion, your link includes numerous examples and there is tremendous emphasis on the difference between cash basis and accrual basis taxpayers. I believe in most cases (other than farmers), the accrual method is not available to individuals. It might be available to SMLLCs, I dunno.

Thanks to both of you for responding.