Help Llc Late Election

[CFP/EA32]

Here is the basic issue:

Family LLC taxed as a partnership.

Story:
Husband and wife own a building inside this LLC in 1997 wife dies and the property is valued at $400,000.00 ( original basis $ 45,000.00). The old accountant never made the election to steup the basis of the LLC building under code section 743. In other words he continued to depreciate the building at 45,000.00

To complicate matters the Husband is now gifting partnerhip interest to other relatives.

The lawyer that is doing the gift tax return is saying that the basis for depreciation should have a step up and I agree except that because this election was not filed by the deadline of the Return for 1997 I am not sure that I can go back and make a late election.

So the net effect as I understand it is the current 2005 basis for depreciation is 45,000.
Am I missing something here?

Please any help would be very appreciated and code section quotes would be great.
Also I am under the impression that this also effects the outside basis of the partnership, ie partnership interest. and for the gift return that has been taken care of.

[Bees Knees]

The inside basis is $45,000 without the election to step up the basis. The step up of basis at the date of death only affected the assets the wife owned at the time of death. She owned an interest in a partnership. So her outside basis in the partnership interest was stepped up at the date of death.

[CF{/EA32]

Thank you for your insight.
Anyone else have any ideas?