Thanks for your quick/thoughtful reply - obviously I've more research to do.
Responses:
- Yes, member #2 paid Estate of member #1 the $$ when acquiring interest
- Member #1's interest went into his Estate for a period of time
- Suspected that only Member #1's share got a step-up in basis as it was transferred to his Estate. I need to become more familiar with working/needs of 754 Election under Section 743(b).
- tell me about it (Re get complicated)
- Spreadsheet configured, post buyout, to add member #1's internal Capital Account to member #2's Capital Account
- see above about familiarity with 743(b) and it's affect on member #2's K-1
- I couldn't reconcile the 1065 Balance sheet if I changed the Assets value - wondered if I missed something
- (unless I've mis-interpreted) about the Capital Gain, I was only thinking about member #1 and fully expected the Estate tax return to reflect the step-up in asset value to FMV
- Seems inconsistent with what I've experienced, not all entries fit the default of '% own * # days / 365' times annual value (e.g. depreciation certainly doesn't, but admittedly my experience with depreciation and the 743(b) adjustment needs improvement - see 3 and 6 above)
