4. Decedent, a cash-method taxpayer has a principal residence upon which Decedent has a mortgage with $5,000 of accrued interest at the time of Decedent’s death. Decedent’s personal representative pays the accrued interest and also pays $1,000 a month in interest on the mortgage during the administration of the estate. 
5. Discuss the deductibility of the $5,000 accrued interest payment and the $1,000 monthly interest payments.

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Under the cash method of accounting transactions are recorded when cash is received ... View the full answer