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Income in respect of decedent

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2. For each of the following independent situations, indicate whether Income (Deduction) in Respect to a Decedent would result. Provide a brief (one sentence) explanation why or why not.
a. Included in Decedent's taxable estate was an IRA (fully deductible, zero-basis traditional IRA) with date of death value of $500,000.
b. After the date of death, the estate received three checks from Decedent's former employer.
a. Decedent's final paycheck, which had not been received prior to death;
b. A check for unused sick leave accrued by decedent prior to death; and
c. A check for accrued vacation time.
c. Included in Decedent's taxable estate was a brokerage account at E-Trade Securities (non-retirement account) with a date of death value of $750,000.

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a. Included in Decedent's taxable estate was an IRA (fully deductible, zero-basis traditional IRA) with date of death value of $500,000.

Lump sum distributions from traditional IRA of decedent is considered IRD- (Page 10 -http://www.mhaven.net/Docs/IRD_FER.pdf)

b. After the date of death, the estate received three checks from Decedent's former employer.

Included in IRD. Compensation received in lieu of services performed by the decedent prior to death but received ...

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See Also This Related BrainMass Solution

Income in respect of a cash basis decedent

Income in respect of a cash basis decedent:

a) Covers income earned before the taxpayers death but not collected until after death

b) Receives a stepped-up basis in the decedent's estate

c) Must be included in the decedent's final income tax return

d) Cannot receive capital gain treatment

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