How do I report a step up in basis from sale of S Corp assets in ProSeries?

Forum|Forum|6 years ago
December 7, 2019
19 replies
65 views

Husband is sole member of LLC taxed as an S Corp dies in May 2018. Wife inherits S Corp and sells S Corp assets AND building it operates out of (owned by H&W) on Sept 1, 2018. I need to be able to increase the basis in the Assets and Building to FMV on DOD. How do I do this in ProSeries?

ProSeries Professional

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Best answer by IRonMaN

Are you sure the assets get a step up or is it the stock basis.

IRonMaNAnswer

Level 15

Are you sure the assets get a step up or is it the stock basis.

Slava Ukraini!

L

lauralynnbrother

Level 2

It is my understanding that the basis of qualified joint interests in property will be adjusted to FMV (or a step up in my case) at DOD to extent they are included in the estate of deceased spouse even if no Estate Tax return is filed. I believe this relates specifically to the Building Sale. The Sec. 1245 Assets sold from the S Corp would also receive a step up in basis at DOD because wife inherits the LLC. Husband dies May 9th, 2018......business and building sell Sept 1, 2018........FMV easy to determine.

M

Marc-TaxMan

Level 7

Don't you have to do a 754 election to get an "inside basis" asset step-up?

PS used to have that election. I have not looked recently

IRonMaN

Level 15

But there isn't anything "inside" being stepped up in this case.

Slava Ukraini!

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