Partnership has rental income and it has 2 partners. Partner 1 dies during the tax year. The only asset in the partnership is the rental property. Please provide guidance as to how to how to handle the step up in basis.
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This may not be particularly helpful, but Partner #1's "Partnership Interest" is stepped up, not the property itself. So the Estate or beneficiary would benefit from that when the Partnership ended.
Did that happen in 2017? If so, the Partnership had a "Technical Termination". -
It happened in 2017. The partnership continued because the estate stepped in. So we would have to get a valuation of the entity not the assets, is that correct?Originally posted by TaxGuyBill View PostComment
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I think so. However, I would also think that in this situation the valuation of the entity would primarily be based on the assets.Originally posted by Florida_EA View PostComment
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Correct since the property are majority of the assets.Originally posted by TaxGuyBill View PostComment
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Partner death
Hmmm...Seems like IRC 754 and 743 may apply.Originally posted by Florida_EA View PostFriends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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