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Posted by George on February 13, 2008, 4:45 pm
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My mother died last June. I'm executor for her estate, which consisted
mostly of CD's and bank accounts, and a few stocks. Total interest
income is about $10K. In doing her final return, I have a question WRT
"Income in Respect of a Decedent (IRD)":
How should interest from a statement period that spans her death be
treated? It was paid after she died, but part of it was earned while
she was alive. Should it be pro-rated by the days she was alive?
The same question, for stock dividends.
Thanks,
George
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Posted by Benjamin Yazersky CPA on February 13, 2008, 9:09 pm
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> My mother died last June. I'm executor for her estate, which consisted
> mostly of CD's and bank accounts, and a few stocks. Total interest
> income is about $10K. In doing her final return, I have a question WRT
> "Income in Respect of a Decedent (IRD)":
>
> How should interest from a statement period that spans her death be
> treated? It was paid after she died, but part of it was earned while
> she was alive. Should it be pro-rated by the days she was alive?
>
> The same question, for stock dividends.
>
> Thanks,
> George
>
> --
Before you can do the 1040 and apply any IRD, you have to do the 706
first.
Its quite complex and I'm not going to even try to explain it in this
space.
You should work with your CPA/tax advisor and tax atty (if preparing
the 706).
IRD is definately NOT a do it yourself thing.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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Posted by George on February 14, 2008, 11:04 am
Please log in for more thread options On Wed, 13 Feb 2008 21:09:18 EST, Benjamin Yazersky CPA
>> My mother died last June. I'm executor for her estate, which consisted
>> mostly of CD's and bank accounts, and a few stocks. Total interest
>> income is about $10K. In doing her final return, I have a question WRT
>> "Income in Respect of a Decedent (IRD)":
>>
>> How should interest from a statement period that spans her death be
>> treated? It was paid after she died, but part of it was earned while
>> she was alive. Should it be pro-rated by the days she was alive?
>>
>> The same question, for stock dividends.
>>
>> Thanks,
>> George
>>
>> --
>
>
>Before you can do the 1040 and apply any IRD, you have to do the 706
>first.
Really? The total value of the estate is decidedly under $2M. Under
$1M, even. Quite a bit under.
>....
G
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by removeps-groups@yahoo.com on February 15, 2008, 6:25 pm
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> Really? The total value of the estate is decidedly under $2M. Under
> $1M, even. Quite a bit under.
The instructions for form 706 say
Which Estates Must File
For decedents dying in 2007, Form 706
must be filed by the executor for the
estate of every U.S. citizen or resident
whose gross estate, plus adjusted
taxable gifts and specific exemption, is
more than $2,000,000
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by D. Stussy on February 14, 2008, 5:47 pm
Please log in for more thread options > My mother died last June. I'm executor for her estate, which consisted
> mostly of CD's and bank accounts, and a few stocks. Total interest
> income is about $10K. In doing her final return, I have a question WRT
> "Income in Respect of a Decedent (IRD)":
>
> How should interest from a statement period that spans her death be
> treated? It was paid after she died, but part of it was earned while
> she was alive. Should it be pro-rated by the days she was alive?
>
> The same question, for stock dividends.
The first rule is that you have to apply her accounting method. The
proration you described is accrual accounting, while most individuals use
cash accounting.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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