Death of a partner

[bhw3]

Hi Rick,

 Your response to this question has raised some questions on the advice I received from a tax professional for a similar issue that I will try to simplify here.

We have a 3 person partnership (2 being husband/wife) that each own 1/3 of the commercial real estate held by the partnership.  Upon the death of 1 partner (husband) in 2021 there was no plan to sell the building, so I was advised to transfer his ownership to an "Estate of" partner.  Should we have instead done the 754 election at that time and gone ahead and transferred his 1/3 to the wife's partnership basis?  I am trying to decide before my time for the 754 election runs out.  

Thank you for your time. 

[DaveF1006]

Please read this IRS Faq Sheet for more information on whether or not to make this election. As far as offering advice, this is a legal issue that we are not allowed to render opinions on because of the legal complexity of the issue, although I can comment that the FAQ sheet states this election can  be made before the due date of the return. 

In retrospect, this faq sheet should give you enough information for you to render your opinion based on your set of facts.