Income in Respect of a Decedent (IRD)

Income in Respect of a Decedent (IRD) is a term used in Canadian income tax law to describe income that is earned by a deceased person after their death. This income is taxed in the same way as income earned by a living person, and is included in the deceased person's final tax return.

There are a few different types of IRD, including:

• Income from property that was owned by the deceased person at the time of their death
• Income from a business that was owned by the deceased person at the time of their death
• Income from a trust that was created by the deceased person before their death

In some cases, it may be possible to claim a deduction for IRD. This is the case if the income is from a business that was owned by the deceased person, and the business was not profitable in the year of the death.

It is important to be aware of IRD when filing a tax return for a deceased person. If IRD is not included in the return, the deceased person's estate may be subject to additional taxes.

Here are some additional details about IRD:

• IRD is taxed at the same rate as income earned by a living person.
• IRD is included in the deceased person's final tax return.
• IRD can be claimed as a deduction on the deceased person's final tax return.
• IRD can be claimed as a deduction on the tax return of the deceased person's estate.

If you have any questions about IRD, you should consult with a tax professional.