Estate completed sale of land under contract from deceased individual, what's the basis

[taxprowtm1]

I have a situation where an individual entered into a contract to sell a piece of land to a business. The individual died before completing the sale and the estate completed the sale according to the contract. Does the estate get a stepped up basis in the sale of the land, even thought the contract was made before the seller died?

[tagteam]

You might want to consult with a local tax professional and/or legal counsel since the law could vary from state to state.

However, typically the contract for sale would be considered executory, but legally binding on the estate. As a result, the basis would be the contract (sales) price set forth in the contract for sale.