Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-09-2011, 09:50 AM
Junior Member
 
Join Date: Jan 2011
Posts: 1
Estate - Basis Step Up

My father died in 2009. He was a 20% general partner in a general partner that owned an apartment complex.

The value of his 20% interest at his date of death was $200,000.

He had a negative capital account at his date of death of about $(100,000).

I have three questions relative to this step up in basis:

(1) the step up in basis is $300,000 - correct?

(2) that $300,000 step up will be allocated to the various classes (land, building, equipment), and then depreciated accordingly - correct?

(3) On my books, how would I set up the value of the asset - would it be the $200,000 value or the $300,000 step up? This part is confusing me because I think that I need to book the $300,000 since that is the new depreciable basis, but that doesn't make sense if the fair market value is only $200,000. If the estate sold it for, say, $200,000, I would think that there would be zero gain or loss, but if I have the $300,000 basis on the books, I would end up showing a $100,000 loss.

Thank you in advance for any guidance.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Unknown cost basis of a spinoff and unknown basis date Joy Joy Capital Gains 1 07-12-2010 10:35 AM
Cost basis????????? narekkm Capital Gains 1 02-19-2009 02:06 PM
Cost Basis after Acquisition ranger99 Capital Gains 1 05-08-2008 09:35 AM
Unknown basis kp1251 Capital Gains 1 02-14-2008 12:05 PM
Shareholder basis arcteryx S-Corporation 1 11-29-2007 04:52 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.