Income reported in the final tax return must include any income earned by the deceased up to the date of death but need not include any net capital gain recognized under the deemed disposition rules.

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Income reported in the final tax return must include any income earned by the deceased up to the date of death and also must include any net capital gain recognized under the deemed disposition rules, as assets are considered to have been disposed of at their fair market value immediately before death.

Income Reported in the Final Tax Return Must Include Any