Inheriting Money

Watch out for “income in respect of a decedent” issues when receiving an inheritance

Leave a Comment / Estate Planning, Estate Tax, Income In Respect Of A Decedent (IRD), Income Tax, Inheriting Money / Douglas Freeman

Most people are genuinely appreciative of inheritances, and who wouldn’t enjoy some unexpected money? But in some cases, it may turn out to be too good to be true. While most inherited property is tax-free to the recipient, this isn’t always the case with property that’s considered income in respect of a decedent (IRD). If […]

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When inheriting money, be aware of “income in respect of a decedent” issues

(IRD) Income from a Descendent, Estate Tax, Federal Estate Tax, Inheriting Money, IRA, Itemized Deduction / Douglas Freeman

Once a relatively obscure concept, “income in respect of a decedent” (IRD) may create a surprising tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there may be ways to minimize or even eliminate the IRD tax bite. Basic rules. For the most part, the property

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