A little background.

We have an LLC that has a multifamily property in it. My sister had a 13.23% interest and I have an 86.77% interest. My sister passed away on March 31, 2022 and I inherited her 13.23% interest.

The property was purchased in 2011 and had an original cost of $2,602, 851 of which $1,200,000 was land and $1,402,851 was the building. I am now 100% member of the LLC and owner of the property. I also understand that the LLC will become a disregarded entity. When my sister passed away, we had just done a re-finance. The appraisal at that time came in at $5,525,000.

I understand that I can have a 754 election by attaching that to the 1065 return. I understand that there is the inside step-up and the outside step up of basis.

The first question is how and where on the 1065 and the K-1's do I add the step-up. Which forms? Which Lines? I am using intuit Business. 

The second question is based on the new appraised value how I calculate the step-up.  

The 3rd question is do I need to file two 1065's? one for the two member LLC and the second beginning after my sister passed away as a disregarded Entity. 

It's very confusing. Thank you for any help.