If an individual receives IRD and includes it on their return, they are not allowed to claim a deduction for the estate tax paid on that income if Form 706 was filed.
What is IRD?
- Income in respect of a decedent (IRD) refers to untaxed income that a decedent had earned or had a right to receive during their lifetime. IRD is taxed to the individual beneficiary or entity that inherits this income.
- However, IRD also counts toward the decedent’s estate for federal estate tax purposes, potentially drawing a double tax hit. Fortunately, the beneficiary may be able to take a tax deduction from the estate tax paid on IRD. The beneficiary must declare IRD as income for the year in which the person received it.
To learn more about Income in respect of a decedent (IRD) with given link
https://brainly.com/question/20355243
#SPJ4
