Decedent, an attorney using the cash method of accounting, who has a $100,000 account receivable for...

Decedent, an attorney using the cash method of accounting, who has a $100,000 account receivable for services, dies. Who is taxed on the income, when are they taxed, and what is the character of their gain in the following circumstances:

a) The receivable is collected by Decedent’s estate

b) The receivable is transferred by Decedent’s estate to Creditor to satisfy the estate’s debt to Creditor

c) The receivable is distributed to Decedent’s Child by the estate and is collected by Child

d) Same as (c), above, except that prior to the collection of the receivable, Child dies and the receivable is collected by Child’s estate.

**Use CT as reference

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ekkarill92 answered 1 year ago

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