neilbrink Posted January 13, 2011 Report Share Posted January 13, 2011 My client was in the middle of a 20 year contract sale for farmland that she sold when she died this year. The buyer will pay off the remaining amount of the contract to the estate. Can someone tell me if the basis in the property is still the basis listed in the contract, or will the estate (and ultimately the beneficiaries) receive the modified stepped up basis of the remaining value of the farmland not yet paid off? Thanks. Neil Quote Link to comment Share on other sites More sharing options...
OldJack Posted January 13, 2011 Report Share Posted January 13, 2011 No step-up and the gain received is taxable in the same classification and manner as was before the death. Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 13, 2011 Report Share Posted January 13, 2011 "Transfer of an Installment Obligation at Death – A transfer of an installment obligation at death is not a disposition of the note for tax purposes. Rather, the income is reportable by the estate or beneficiary who receives the note in the same manner as if the decedent had lived (this results in “income in respect of a decedent,”)" Quote Link to comment Share on other sites More sharing options...
neilbrink Posted January 13, 2011 Author Report Share Posted January 13, 2011 Thanks. Quote Link to comment Share on other sites More sharing options...
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