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A partnership sold their royalty interest. Several of the…

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A partnership sold their royalty...
A partnership sold their royalty interest. Several of the partners have passed away during the years so their interests have passed to their heirs. I don't have the basis of each partner's share assuming they each have a step-up-in-basis when inherited. How do I report the sale of the royalties on the partnership return?
Submitted: 4 months ago.Category: Tax
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Answered in 6 days by:
3/21/2018
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 4 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 4 months ago
You report the gain with the historical basis. Unless the new partners made 754 elections with the partnership, you report what you have.They can reflect basis step-ups in the partnership when they sell them, but the lack of 754 elections will hurt them now.Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer
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