Taxpayer inherited partnership interest at his father's death. The only asset in partnership was a large piece of land that was rented out. I understand that the basis of partnership interest would have had a step-up in value based on the FMV at father's date of death. The partnership sold a large piece of the asset several years later. It seems as though the step-up in basis in the land is lost within the partnership if the total partnership interest is not sold unless a 754 election is made. I would think being the asset was land a 754 election would not be made due to lack of depreciation. Am I missing something or does it appear I am understanding the process?
Peggy Sioux
Peggy Sioux