Single member LLC owns a building. The rental activity before the sale was reported on the owners personal tax return.
The owner of the single member LLC sells 50% of the LLC to another person. The LLC interest was sold for $300,000 more than the cost basis. 50% of the cost basis of the building was $900,000 before the sale. The sale price for 50% of the LLC was $1,200,000.
The LLC is now a partnership post sale.
Does the new 50% owner get a step up in the cost basis for depreciation purposes? It seems like the same end result of a 754 election and 743 adjustment. I just haven't encountered this before.