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Step up in Basis of Business Asset

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    Step up in Basis of Business Asset

    Ma & Pa operated an engraving business in NY for 25 years. ACB of asset is now 0

    Pa Died. Ma gave engraver to son in TX who has started an engraving business. Asset FMV $3500

    What is sons basis in the asset?

    I'm thinking 1/2 step up at death of Pa so $1750? Is this correct?
    Last edited by equinecpa; 11-12-2009, 01:33 PM.

    #2
    Originally posted by equinecpa View Post
    Ma & Pa operated an engraving business in NY for 25 years. ACB of asset is now 0

    Pa Died. Ma gave engraver to son in TX who has started an engraving business. Asset FMV $3500

    What is sons basis in the asset?

    I'm thinking 1/2 step up at death of Pa so $1750? Is this correct?
    Question??? Was the engraving business a partmership, or what was the entity form? Was the Mom the execitrix? Was there a will? Lots of questions on this step-up issue.

    But it sounds like Dad was the business since Mom does not need the engraver anymore. If that is the case basis would be $3,500................?????????????
    Last edited by BOB W; 11-12-2009, 02:26 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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