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#1
02-21-2005, 07:25 AM
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 Re: sale of partnership asset with inside outside basis difference "bm30003700[at]aol.com" <bm30003700[at]aol.com> wrote: - quote - > My client has a 50% interest in a partnership. The
It should.> partnership's only asset is an office building. > My client's wife passed away in 2003 and the partnership > sold the' building in 2004. He lives in a community > property state, and the office building is located in the > same state. > It is my understanding that the client would have stepped up > basis for 50% of the building if the 50% interest had been > held by he and his wife as community property (ie, 25% > each). > Does the same result occur where my client and his wife held > 50% interest, as community property, in the partnership > owning the building. - quote - > If so, how do I handle the fact that
The same way you show any sale. On Sch. D or 4797 or> the K-1 will show the gain on the sale based on the > partnership's lower basis in the property. wherever the K-1 instructs you to report the gain. Outside basis is irrelevant to inside activity unless there is appreciated property contributions involved. - quote - > Also, how do I know for certain that my client's interest in
State law?> the partnership was community property? - quote - > Does the K-1 need
How can you have community property where there is only one> to show both the name of my client and his spouse, in the > under "Partner's Name on the K-1, along with the words > "community property" surviving spouse? You have one spouse here, not two. One owner, not two. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-21-2005, 06:09 AM
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| Re: sale of partnership asset with inside outside basis difference "bm30003700[at]aol.com" <bm30003700[at]aol.com> wrote: - quote - > My client has a 50% interest in a partnership. The
This seems like an excellent opportunity for a Section 754> partnership's only asset is an office building. > My client's wife passed away in 2003 and the partnership > sold the' building in 2004. He lives in a community > property state, and the office building is located in the > same state. > It is my understanding that the client would have stepped up > basis for 50% of the building if the 50% interest had been > held by he and his wife as community property (ie, 25% > each). > Does the same result occur where my client and his wife held > 50% interest, as community property, in the partnership > owning the building. If so, how do I handle the fact that > the K-1 will show the gain on the sale based on the > partnership's lower basis in the property. > Also, how do I know for certain that my client's interest in > the partnership was community property? Does the K-1 need > to show both the name of my client and his spouse, in the > under "Partner's Name on the K-1, along with the words > "community property" election to step up the basis of the partnership property for your benefit. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-18-2005, 11:33 AM
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| sale of partnership asset with inside outside basis difference My client has a 50% interest in a partnership. The partnership's only asset is an office building. My client's wife passed away in 2003 and the partnership sold the' building in 2004. He lives in a community property state, and the office building is located in the same state. It is my understanding that the client would have stepped up basis for 50% of the building if the 50% interest had been held by he and his wife as community property (ie, 25% each). Does the same result occur where my client and his wife held 50% interest, as community property, in the partnership owning the building. If so, how do I handle the fact that the K-1 will show the gain on the sale based on the partnership's lower basis in the property. Also, how do I know for certain that my client's interest in the partnership was community property? Does the K-1 need to show both the name of my client and his spouse, in the under "Partner's Name on the K-1, along with the words "community property" Any and all responses, and suggestions, greatly appreciated << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| asset, basis, difference, inside, partnership, sale |
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