nicole
Level 1
12-06-2019
04:49 PM
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Shareholder dies and property held in the S-Corporation is sold. Where do I report his stepped up basis as of the date of death? I am not sure if it is reported under the dispositions on the corporate return (It only affects one shareholder, not the others) or is it reported on the individual return?
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PhoebeRoberts
Level 11
12-06-2019
04:49 PM
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There's no 754 election for S-corps. The decedent's estate has a step up in the basis of the stock, not the underlying assets. The transaction you describe, assuming the S-corp isn't filing a final return, isn't reported on either the 1120S or the 1041 or anyone's1040.
abctax55
Level 15
12-06-2019
04:49 PM
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Is this the right time to discuss why it isn't a good idea to put real property in a corp?
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nicole
Level 1
12-06-2019
04:49 PM
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The trust holds the assets.
nicole
Level 1
12-06-2019
04:49 PM
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There is a step up in basis if the assets of the corp are sold in the year of death.
abctax55
Level 15
12-06-2019
04:49 PM
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"...Shareholder dies and property held in the S-Corporation is sold"
Per your statement, the CORP holds the assets, the *trust (first mention)* holds the stock. BIG difference.
And thanks for the no vote.
Per your statement, the CORP holds the assets, the *trust (first mention)* holds the stock. BIG difference.
And thanks for the no vote.
"*******Tax software is no substitute for a professional tax preparer*******
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IRonMaN
Level 15
12-06-2019
04:49 PM
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I guess this isn't a good time to discuss putting real property into a corp :wink:
Slava Ukraini!
Slava Ukraini!
abctax55
Level 15
12-06-2019
04:49 PM
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LOL....guess not. Perhaps I should edit that to add " /s".
"*******Tax software is no substitute for a professional tax preparer*******
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