743(b) vs 734(b)

[jlew1229]

Partnership return. 

3 Partners.   Partner #1 passes away.   Partner #2 & 3 buyout the beneficiaries of Partner #1 for 1/3 of the FMV of the Real Estate.   

I want to make a 754 Election- but not sure if it is a 743(b) basis adjustment or 734(b) basis adjustment?  

I believe it would be a  734(b) basis adjustment - as I would like to  increase the asset basis in the partnership.  - not a basis adjustment of the partner.   ? 

Is this correct?

Thanks

[Accountant-Man]

It's been a very long time, but I think it needs to be 743.

[TaxGirl3]

743, but the partnership doesn't increase the basis of its assets - assets are created for each partner for tax purposes only and can be depreciated / amortized. 

734 is for redemptions scenarios.  From the man himself:

https://www.forbes.com/sites/anthonynitti/2014/03/11/tax-geek-tuesday-tackling-the-dreaded-section-7...

https://www.forbes.com/sites/anthonynitti/2015/06/16/tax-geek-tuesday-comparing-a-sale-and-redemptio...

[jlew1229]

My apologies for not replying sooner.   Thank you very much for the articles.  It is very helpful.