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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4623
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have a client who died en 2014 he has an LLC , that has 600k

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I have a client who died en 2014 he has an LLC , that has 600k in properties. His brother is taking over all the properties. we want to know if we have to pay taxes on the transition from one owner to the next being that his brother is dead. Were can i get some information on this .
Welcome to the site. I'm PDtax, and will be helping you today.
Estates typically operate to effect transfer of assets, pay final expenses, and resolve the affairs of the decedent, and start the affairs of the heirs. If that was all the assets of the decedent, there likely is no estate tax to pay, Federal or your state.
There is a final short year 1040 tax return that the decedent's executor should have prepared for any income or loss in 2014. That way, rents can be properly allocated to the decedent/the estate/the new owner.
The LLC ownership should get a stepup in basis to fair market value. You can elect to increase the bases of the inherited properties held in the LLC if you choose.
Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.
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