Partner dies in 2018, his estate now owns the shares in 2019 when the LLC buys the shares for less than the capital account. Capital account is $2.4 Million and they settled for $2 Million paid over 3 years. I felt comfortable with partnership taxation until now. Not sure best way to handle this and whether a Sec. 754 election is mandatory or optional. Any advise is appreciated.
-
-
754 election is mandatory IF it was made by the partnership now or any time before. You may not want it if it would be a step - down...
Any hot assets left in partnership may change capital and ordinary gain(loss) assignment. If really a loss no installment treatment should be elected if a LOSS.
Make sure the basis is good, as to computation. -
Thank you!Comment
Comment