Decedent's Estate: Basis

[LCP]

The estate gets the same step-up that the ultimate heir would get correct?

What about installment notes? Is the "basis" of that note equal to the balance less the remaining gross profit to recognize? Does a step up occur at date of death? IOW, does the remaining gain go away?

[Bees Knees]

The estate gets the same step-up that the ultimate heir would get correct?

That is correct.

What about installment notes?

TTB page 21-28 says income in respect of a decedent does not get stepp up of basis.

TTB page 21-6 lists installment sales as income in respect of a decedent.

Installment notes are treated identical in the hands of the estate or heirs as they were in the hands of the decedent. You simply continue to report the same percentage of principal received as a capital gain, + interest as if the decedent were still collecting the payments.