Decedents Final Return and Income in Respect of Decedent

1. How much of an item of income in respect of a decedent is taxed to the recipient? a. The portion which is included on the decedents final return. b. The portion which the decedent would have reported if he had lived to receive the income. c. The portion which was earned after the date of death. d. The entire amount of the item, regardless of when it was earned or received.

2. What is the character of an item of IRD? a. Ordinary income. b. Capital gain. c. Same as in the hands of the decedent. d. 1231 gain. e. Capital loss.

3. Which of the following types of compensation are not considered IRD? a. Payment of a cash basis decedents back salary made before death. b. Commissions earned by a decedent through services performed before death, but received after death. c. Distributions from deductible IRA. d. Distributions from a qualified pension plan.

4. Which of the following dividends is IRD? a. Dividends declared and recorded before death, but paid after death. b. Dividends declared, recorded and paid after death. c. Dividends declared, recorded and paid before death. d. Dividends declared before death, but recorded and paid after death.

5. Which of the following U.S. savings bond interest is treated as IRD? a. Interest on a Series EE bond earned after the date of death where the decedent elected 454 to report the interest annually. b. Interest on a Series EE bond which is earned prior to death and included on the decedents final return pursuant to a 454 election made by the executor. c. Interest on a Series EE bond earned prior to death by a decedent who did not make a 454 election. d. Interest on a Series EE bond which is earned prior to death by an accrual basis decedent.