partnership ?

[DixieEA]

Estate was settled in 02-01-2007. Two rental homes were left to 4 benf. with undivided
interest. Client filed and got partnership fed ID # because set up bank acct to manage
the two properties, a form 1065 is required to be filed. I am not a 1065 expert, do you
file the rentals on sch e with the 1065 form with each partner receiving a K-1 showing his share of his net rentals, and what do you use as basis on the sch E?


Thanks, DixieEA

[Dory]

Dory

Partnership 1065 files a form 8825 which is equal to sch e. Very much the same. and then the sch K-1 goes to each partner. Hope this helps.

[les grans]

You should suggest that your client talk with a local attorney about whether and how to title the two properties in the partnership's name. Where are the properties titled now, still in the name of the deceased, probably. But they will end up in the names of the four heirs, likely, if the estate takes the course of least resistance, while it might be more appropriate for them to be titled in the partnership. That's why a local attorney should be got into the picture.
And for income tax purposes, the tax basis of the two properties would be their fair market value as of date of death of their late owner. Was there a value established then, like was there an estate tax return filed, or an inventory that valued the decedent's assets? If not, someone will have to at least take a stab at the value of the two properties for income tax basis purposes. .

[DixieEA]

Thanks

Thanks for the replies, the infomation is very helpful.

DixieEA