austincpa wrote: The partner that uses the property has since bought out the other 2 members using another entity that the partner owns.
Nilodop wrote:Do you still actually have a partnership? If there is but one owner, there is no longer a partnership and no election would be available.
But don't the election and the basis adjustment occur in the (final, in OP facts) year of the partnership when the transaction took place?
That doesn't mean that the assets aren't stepped up, though.
How?
CaptCook wrote:austincpa wrote: The partner that uses the property has since bought out the other 2 members using another entity that the partner owns.
Do you still actually have a partnership? If there is but one owner, there is no longer a partnership and no election would be available. That doesn't mean that the assets aren't stepped up, though.
761(a)Partnership. For purposes of this subtitle, the term “partnership” includes a syndicate, group, pool, joint venture or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title [subtitle], a corporation or a trust or estate.
1.761-1(a) Partnership. The term partnership means a partnership as determined under §§301.7701-1, 301.7701-2, and 301.7701-3 of this chapter.
301.7701-2(a) Business Entities. For purposes of this section and § 301.7701-3, a business entity is any entity recognized for federal tax purposes...
301.7701-1(a)(2) Certain joint undertakings give rise to entities for federal tax purposes. A joint venture or other contractual arrangement may create a separate entity for federal tax purposes if the participants carry on a trade, business, financial operation, or venture and divide the profits therefrom....
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