Step up in Basis of Business Asset

equinecpa

Senior Member

Join Date: Mar 2006

Posts: 578
#1

Step up in Basis of Business Asset

11-12-2009, 12:55 PM

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.
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BOB W

Senior Member

Join Date: Jun 2005

Posts: 4060
#2

11-12-2009, 02:22 PM

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.

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