My mother was in the process of selling a rental property and passed away 2 days prior to settlement, Is the income part of the estate or reported on her final taxes.

[TomK · Accepted solution]

I'm very sorry for your loss.

Only income earned between the beginning of the year and the date of death should be reported on the final return.

For taxpayers who use the cash method of accounting, as most do, income is considered earned as it is actually received or at least made available to them. Taxpayers who use the accrual method of accounting, on the other hand, count income as earned when they actually earn it, regardless of when they receive it.

If the sale was not final at the time of here death, that income is attributed to her estate.