How to calculate stepped-up basis on rentals owned by spouses, one spouse died May 28, 2023?

Forum|Forum|3 years ago
June 29, 2023
2 replies
22 views

How do I enter the step-up adjustment into the asset entry form?

Do I prorate the depreciation per date of death

This was Form 1065, a partnership, with a new partner taking the place of deceased spouse.

ProSeries Professional

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Best answer by Accountant-Man

Look up Section 754 and Section 743 step ups.

qbteachmt

Level 15

There really is not enough info presented.

If this is a community property State or not, makes a difference.

If the property is titled to the partnership, there might not be any provision for step up of basis, since the property is by definition outside of the estate.

The partnership share/value is passed through the estate or per the partnership agreement. The new partner doesn't simply step in and take that place. There was no buy in?

I found a few articles for you, and this looks like a good place to start knowing what answers you need:

https://hmbtx.com/step-up-in-basis-for-assets-held-in-an-entity/

Don't yell at us; we're volunteers

Accountant-ManAnswer

Level 13

Look up Section 754 and Section 743 step ups.

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G

GretaAuthor

Level 7

I need help with proration of K-1s in 2023. One of two partners died May 28 2023 to be replaced per his will by a trust. Trust may be formalized later in the year. So the widow gets 50% on her K-1. What % does the deceased partner get, and what % does the Trust get? Step Up basis takes place on May 28?

sjrcpa

Level 15

Does your software have a change in ownership section where you can enter dates and percents of ownership? Then it would pro rate.

Yes the step up starts on date of death for new member.

The more I know the more I don’t know.

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