[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.691(a)-1]

[Page 363-364]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec.  1.691(a)-1  Income in respect of a decedent.

    (a) Scope of section 691. In general, the regulations under section 
691 cover: (1) The provisions requiring that amounts which are not 
includible in gross income for the decedent's last taxable year or for a 
prior taxable year be included in the gross income of the estate or 
persons receiving such income to the extent that such amounts constitute 
``income in respect of a decedent''; (2) the taxable effect of a 
transfer of the right to such income; (3) the treatment of certain 
deductions and credit in respect of a decedent which

[[Page 364]]

are not allowable to the decedent for the taxable period ending with his 
death or for a prior taxable year; (4) the allowance to a recipient of 
income in respect of a decedent of a deduction for estate taxes 
attributable to the inclusion of the value of the right to such income 
in the decedent's estate; (5) special provisions with respect to 
installment obligations acquired from a decedent and with respect to the 
allowance of a deduction for estate taxes to a surviving annuitant under 
a joint and survivor annuity contract; and (6) special provisions 
relating to installment obligations transmitted at death when prior law 
applied to the transmission.
    (b) General definition. In general, the term income in respect of a 
decedent refers to those amounts to which a decedent was entitled as 
gross income but which were not properly includible in computing his 
taxable income for the taxable year ending with the date of his death or 
for a previous taxable year under the method of accounting employed by 
the decedent. See the regulations under section 451. Thus, the term 
includes:
    (1) All accrued income of a decedent who reported his income by use 
of the cash receipts and disbursements method;
    (2) Income accrued solely by reason of the decedent's death in case 
of a decedent who reports his income by use of an accrual method of 
accounting; and
    (3) Income to which the decedent had a contingent claim at the time 
of his death.

See sections 736 and 753 and the regulations thereunder for ``income in 
respect of a decedent'' in the case of a deceased partner.
    (c) Prior decedent. The term income in respect of a decedent also 
includes the amount of all items of gross income in respect of a prior 
decedent, if (1) the right to receive such amount was acquired by the 
decedent by reason of the death of the prior decedent or by bequest, 
devise, or inheritance from the prior decedent and if (2) the amount of 
gross income in respect of the prior decedent was not properly 
includible in computing the decedent's taxable income for the taxable 
year ending with the date of his death or for a previous taxable year. 
See example 2 of paragraph (b) of Sec.  1.691(a)-2.
    (d) Items excluded from gross income. Section 691 applies only to 
the amount of items of gross income in respect of a decedent, and items 
which are excluded from gross income under subtitle A of the Code are 
not within the provisions of section 691.
    (e) Cross reference. For items deemed to be income in respect of a 
decedent for purposes of the deduction for estate taxes provided by 
section 691(c), see paragraph (c) of Sec.  1.691(c)-1.

[T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 6808, 30 FR 
3435, Mar. 16, 1965]