My father passed away in the middle of selling NJ land & building; who pays the profit from the sale since hes now gone?

I think at first glance- you need to find out if the sale is included in your father's name. If so it would be reported on his final 2020 tax return and the above scenario 1 would be correct (assuming the costs basis estimate is on par). If the sale is in your name, then fortunately for you, you would get a step up in basis at the date of his death thus eliminating the need for the $45,900 est payment. This would be the best case scenario because your basis would equal the sales price therefore no tax due on the sale.

This is my minimal understanding, there may be some legal aspects to the contract already being drawn up etc that I wouldn't be familiar with. Maybe someone else could chime in and help on that part.

/r/tax Thread