Which of the following inherited properties does not get stepped up to date of death fair market value and therefore still exposes the person inheriting the property to income tax on appreciation or income during the life of the deceased person?

1-shares of a mutual fund that have appreciated in value at the time of death

2- land and buildings that have appreciated in value at the time of death

3-accrued income on bonds and dividends declared on stocks during the life of the deceased owner but not paid until after death

4-none of the above