Rule 560-7-7-.08 - Income and Expenses of Taxpayer Who Dies(1) Purpose. The purpose of this Rule is to provide guidance concerning the determination of taxable income of a taxpayer who dies.(2) General Provisions. (a) The final return of a decedent who dies during the taxable year shall be computed on the same method of accounting (cash or accrual) as was used by the taxpayer in the last income tax return filed by him with the State of Georgia within three years next preceding the date of death.(b) The amount of all items of gross income in respect to a decedent which are not properly includable in respect to the taxable period in which falls the date of his death or a prior period shall be included in the gross income, for the taxable year when received of: 1. The estate of the decedent, if the right to receive the amount is acquired by the decedent's estate from the decedent;2. The person who, by reason of the death of the decedent, acquires the right to receive the amount, if the right to receive the amount is not acquired by the decedent's estate from the decedent; or3. The person who acquires from the decedent the right to receive the amount of bequest, devises, or inheritance, if the amount is received after a distribution by the decedent's estate of such right.(c) If the decedent at the time of his death possessed installment obligations which were being reported on the installment basis, the unreported income on such obligations shall be included in the decedent's final return or the estate of the decedent in the same manner as provided by the Internal Revenue Code.(d) If a deceased taxpayer has not filed a return with the State of Georgia within the three years next preceding the date of death the Commissioner may require that the return be filed on the cash basis.(e) If any successor of a decedent is not a resident of this State he is considered for the purposes of this Rule a non-resident with income subject to tax in this state whether or not he is a nonresident subject to tax as defined in O.C.G.A. § 48-7-30 and regulations there under.Ga. Comp. R. & Regs. R. 560-7-7-.08
O.C.G.A. Secs. 48-2-12, 48-7-33, 92-3005, 92-3006, 92-8405, 92-8406, 92-8409, 92-8427.
Original Rule entitled "Income and Expenses of Taxpayer Who Dies" adopted. F. and eff. June 30, 1965.Amended: F. Dec. 6, 2010; eff. Dec. 26, 2010.