Wow what a great explanation. Thank you! This makes perfect sense to me now. A couple more questions.
1. When I create another asset for my sisters portion of the land and building FMV x 13.23% what do I title it?
New 8 units? Step up 8 units? I assume it cannot be the same as the original titled building? does it matter?
2. I assume that since it is still rental real estate that I depreciate this new asset over 27.5 years correct?
3. My Sister passed on March 31st. Do I start the disregarded entity for my return on April 1 or March 31st
4. In California, we are required to file California form 568 for LLC's and pay the $800 annual tax. Disregarded Entities are also required to file California form 568 and pay the $800 annual tax. since I will be filing both a final 568 for the LLC and a 568 for the disregarded entity, I assume I am only required to pay the annual tax once.
Once again thank you for all of your help.
