Income In Respect Of A Decedent - IRD
- Income In Respect Of A Decedent - IRD
- Money that was due to a decedent and will pass through to the recipient or estate as income during that tax year. The recipient (beneficiary) must declare the money as income in respect of a decedent (IRD) for any year in which income is received. The estate must also claim the income, but may claim a deduction in the amount of income tax due on the IRD.
While it's more common to deal with assets in an inheritance, the decedent may have had a last paycheck or unpaid commissions in transit at the time of his or her death. These items will never be reported on the decedent's income taxes and will instead be double-taxed by the recipient and the decedent's estate.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Decedent (IRD) Deduction — The decedent or IRD deduction stands for Income in Respect of a Decedent deduction. It is an IRS term that refers to inherited income that is subject to federal income tax. It refers to income which was earned by the decedent during his or her… … Investment dictionary
IRD asset — The income in respect of a decedent (IRD) asset is part of inheritance which consists of taxable income to which the deceased person was entitled to, but failed to receive before their death. A typical case is the last paycheck, which may be left … Wikipedia
IRS Publication 559: Survivors, Executors And Administrators — A document published by the Internal Revenue Service (IRS) that provides guidance to persons responsible for the estate of a deceased individual. IRS Publication 559 outlines the necessary steps to completing a tax return for the deceased, how… … Investment dictionary
