Passing inventories through an estate may allow the inventory to receive a stepped-up basis so that the sale of it by heirs would be tax free, except for any gain accrued since the decedent's death. Additional References IRS Publication 537, Installment Sales . IRS Publication 225, Farmers Tax Guide , Chapter 12. IRS Publication 544, Sales and Other Dispositions of Assets , Chapter 1. The information contained in this NebFact is for educational purposes only.
Tax is complicated and the information presented here has necessarily been simplified.
See a tax consultant for specific questions. Kenneth R. Bolen, Director of Cooperative Extension, University of Nebraska, Institute of Agriculture and Natural Resources.