I know typically you cannot because they are considered repairs and not improvements but the realtor said you can if you do it to sell your home. I do not trust him help me out.
Me and a partner own a partnership that owns a rental property. I am going to buy my partner out, thereby terminating the partnership for tax purposes. My basis in the property (without adjustments) is $42,500 right now. I am buying him out for $92,500. How do I step up my basis to the proper amount on my taxes? I do not believe a section 754 election applies when a partnership is completely bought out and ceases to exist.
Thanks!
Would it be possible to loan money to the partnership through an entity which I control and personally guarantee that debt and then pay back the loan after the first of the year? Are there adverse consequences to doing that? I am fairly certain that the losses allocated to me will exceed my basis and I wanted to figure out a way to take advantage of this (legally) without putting more money into the partnership on a long term basis.
This farm was owned by my Granny’s husband before they married. They created a living trust and the farm became part of the trust. He has passed on and Granny is looking to sell. I need to understand the tax consequences.
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