How do I determine my adjusted basis upon buy-out of a partnership?

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Subject Author Date How do I determine my adjusted basis upon buy-out of a partnership? comenngoing 04-16-2009  Re: How do I determine my adjusted basis upon buy-... comenngoing 04-16-2009
Posted by comenngoing on April 16, 2009, 5:14 pm Please log in for more thread options Me and a partner own a partnership that owns a rental property. I am going to buy my partner out, thereby terminating the partnership for tax purposes. My basis in the property (without adjustments) is $42,500 right now. I am buying him out for $92,500. How do I step up my basis to the proper amount on my taxes? I do not believe a section 754 election applies when a partnership is completely bought out and ceases to exist. Thanks! ========================================= MODERATOR'S COMMENT: Step up? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by comenngoing on April 16, 2009, 5:53 pm Please log in for more thread options On Apr 16, 4:14 pm, comenngo...@gmail.com wrote: > Me and a partner own a partnership that owns a rental property. I am > going to buy my partner out, thereby terminating the partnership for > tax purposes. My basis in the property (without adjustments) is > $42,500 right now. I am buying him out for $92,500. How do I step up > my basis to the proper amount on my taxes? I do not believe a section > 754 election applies when a partnership is completely bought out and > ceases to exist. > > Thanks! > > ========================================= MODERATOR'S COMMENT: > Step up? When I say step up I mean increase it to the amount I have purchased the whole property for (the original 42,500 plus the 92,500 I have purchased the other half for). -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Partnership Basis Question April 10, 2007, 10:06 am In a partnership, when are capital account and outside basis the same April 5, 2009, 10:50 pm Software to Track Master Limited Partnership Basis? November 7, 2009, 3:34 pm Is Lease Buyout Taxable Income? July 9, 2007, 12:31 am Quarterly payments vs. adjusted witholding? March 12, 2007, 8:54 pm How to calculate modified adjusted gross income March 1, 2007, 7:06 am Inflation Adjusted Items for 2010 Released By IRS October 15, 2009, 3:09 pm Madoff Clients, Income Tax Paid, and Filing of Adjusted Return December 16, 2008, 1:39 pm determine dependency March 3, 2008, 1:10 pm how do I determine my tax bracket if I'm an ex-pat? July 6, 2008, 12:34 pm