My mom died last August, and I inherited a promissory note for a business she sold in 2011. The note went into probate, and I created an estate account with an EIN to collect the payments until her estate closed.
The 1099-INT from the loan servicing agency has her SS# and shows the principal and interest paid for the whole year. As I understand it, I need to report on her return only the principal and interest received up to her date of death. So, I would divide the totals by 365, then multiply by the number of days up to her DoD. Then I enter those interest and principal amounts on her return. The remainders for the rest of the year go on her estate return. Is that correct?
