I inherited an interest in a commercial real estate LLC that owned 3 properties. Per the estate tax return (which was filed and accepted by the IRS), the FMV of inherited interest was $90,000. The return did not provide a separate analysis of the FMV of each property. In 2008, the LLC sold one of the properties. When I filed my 1040, I did not allocate any of the step up to that property. In 2022, the LLC sold the 2nd property. Can I apply $45,000 of the step up when calculating my net gain on the sale of the 2nd property or has the portion that should have been used for the sale of the 1st property been lost?
