Sale of land

[gman]

Taxpayer and spouse in negotiations to sell property. Spouse dies before the sale takes place and the
1099 is made out to taxpayer only. Taxpayer signs the documents for self and as executor for spouse
Is there a step up in basis.

[Roland Slugg]

If there was a binding sale contract in place before W died, there is no step-up in basis. However, if W died before the contract was finalized, then there would be a step-up in basis on half the real estate's value and possibly on 100% depending on what state the sellers are in and how title was held. This assumes, of course, that the W was on the deed.

The COE date is not the true sale date ... it's the date the sale contract is finalized and becomes binding.