I have a new client that brought me their tax returns from last year, their CPA had made the section 754 election: The step up basis are being presented on their schedule L and the partners capital account on their K1. Based on what I have read, this is an entry that is made by the partner being impacted by this election and should not affect the companies books. The partnership only shows the depreciation on the step up basis on line 13 with code V.
Any feedback is appreciated.
C.Pena CPA, TX