Partnership return.
3 Partners. Partner #1 passes away. Partner #2 & 3 buyout the beneficiaries of Partner #1 for 1/3 of the FMV of the Real Estate.
I want to make a 754 Election- but not sure if it is a 743(b) basis adjustment or 734(b) basis adjustment?
I believe it would be a 734(b) basis adjustment - as I would like to increase the asset basis in the partnership. - not a basis adjustment of the partner. ?
Is this correct?
Thanks
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It's been a very long time, but I think it needs to be 743.
743, but the partnership doesn't increase the basis of its assets - assets are created for each partner for tax purposes only and can be depreciated / amortized.
734 is for redemptions scenarios. From the man himself:
My apologies for not replying sooner. Thank you very much for the articles. It is very helpful.
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