I need guidance on filing a new 1065 Return in Turbo Tax Business.
My mother passes away in Dec 2020. She owned rental property in a LLC. It was a single-member; member-managed LLC treated as a disregarded entity. Her returns were filed as 1040's. The sole member was her Revocable Trust with herself as the trustee. Her operating agreement stated that the LLC may continue upon her death. I am the sole heir, trustee and executor. I wish to continue the LLC exactly as is, but as multi-member; member-managed with my husband (50/50). I changed the LLC to multi-member at the State level (Florida) with new Articles of Organization and at the Federal level with Forms 8832 and 8822-B.
My questions are regarding filing the 1065 Return:
#1- Do I show the "Date Business Started" as the original date the LLC was filed with the State of Florida several years ago or the December date of death which started the new partnership?
#2- Do I check "Initial Return", short year (just for Dec 2020) and show only my husband and myself as Members with the new stepped-up cost basis on assets as leave it as that?
#3- Or do I need to add my mother as "Disregarded Entity" Member who left the LLC during 2020; make a 754 Election for the Step-up basis and show a transfer of assets from her and transfer to my husband and myself?
I don't see anywhere on IRS.gov that I need to create a new EIN and restart the business due to an inherited business. I do not want to change EIN's because I don't believe I'll be able to use the same LLC name.
Thanks so much,
Mary M.
