- posted 10 years ago
taxpayer holds a note, with accrued interest. Upon his death, what happens?
1. is the accrued interest included in his estate tax return?
2. is the accrued, yet unpaid interest, taxable to the cash basis taxpayer
in the year of death?
3. is the accrued interest, once paid, taxable to the heirs in the year(s)
what else should we be asking??