"JimLA" <topdollarbid[at]yahoo.com> wrote:

- quote -

In a situation such as this, the basis of the installment
note is the FMV at date of death, or alternative valuation
date if so selected by the estate.

Taxable is a nebulous term. The asset is taxable to the
estate at date of death. State laws will determine the
taxability of the item when it is inherited. The income
element to the beneficiary is determined by the terms of the
note and the nature of the transaction. Estate basis will
have an effect on this.

Hope I haven't confused you with this.

--
Bruce Raskin, CPA
BRaskinCPA[at]aol.com

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I have learned that "when an obligor aquires an installment
obligation by inheritance, the decedent's estate is deemed
to have made a taxable disposition".

When does this become taxable, at the date of death or when
the physical transfer of the obligation is formally
transferred (two different tax years)?

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