Where do I input the stepped up basis for a property sold by a deceased shareholder?

Forum|Forum|6 years ago
December 6, 2019
7 replies
54 views

Shareholder dies and property held in the S-Corporation is sold. Where do I report his stepped up basis as of the date of death? I am not sure if it is reported under the dispositions on the corporate return (It only affects one shareholder, not the others) or is it reported on the individual return?

Lacerte Tax

This topic has been closed for replies.

Best answer by PhoebeRoberts

There's no 754 election for S-corps. The decedent's estate has a step up in the basis of the stock, not the underlying assets. The transaction you describe, assuming the S-corp isn't filing a final return, isn't reported on either the 1120S or the 1041 or anyone's1040.

PhoebeRoberts

Answer

Intuit Community Champion

There's no 754 election for S-corps. The decedent's estate has a step up in the basis of the stock, not the underlying assets. The transaction you describe, assuming the S-corp isn't filing a final return, isn't reported on either the 1120S or the 1041 or anyone's1040.