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Discussion:Step up in basis- Estate

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Discussion Forum Index --> Tax Questions --> Step up in basis- Estate


BPHCPA (talk|edits) said:

18 August 2006
I have an estate in which the deceased owned an interest in an S-Corporation. The only asset in the S-Corp is rental real estate. I assume the only step up in basis will be at the shareholder level. The S-corp will not get any additional depreciation from the step up. On the eventual sale of the real estate, the inherited shareholder will have a capital loss from the stepped up basis to offset the capital gain from the sale.Any comments on my inital thoughts would be helpful.

Taxperson (talk|edits) said:

18 August 2006
Your analysis is correct.

Dennis (talk|edits) said:

18 August 2006
You do have to be carefull, though. You only get the capital loss offset on liquidation. Can be a problem with multiple properties.

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