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Question

Stepped up basis

Forum|Forum|3 years ago
March 26, 2023
1 reply
0 views

A rental property owned by a partnership was sold in 2022. I inherited a 20% interest in the partnership in 2013. Where on form 1040 do I enter my stepped up basis?

did the partnership make an iRC section 754 election? if so the k-1 should reflect this. this would also mean that since inheriting the property, the step-up to the extent allocable to depreciable assets should have been depreciated and reported on your k-1 as a 754 deduction this would be on line 13W and described as section 754 depreciation every year. if the partnership failed to make the election, then you don't get the benefit until you completely dispose of your partnership interest which can result in a capital vs an ordinary loss

The partnership did not make any 754 election. This K-1 is the final since the rental property was the only asset of the partnership.