S-Corp sold real estate and is reporting income as an installment sale. There is $400K left on the installment loan with a 70% gross profit. Sole shareholder dies leaving stock to son.
Is his basis in the stock $400K at time of inheritance?
When the installment loan pays out and the S-Corp distributes $280K of gains to him does that increase his basis to $680K?
I don't think so. I just don't know where it says it doesn't increase basis. It feels like IRD but the corporation didn't die.