If the LLC in the original posters case has been filing 1065, does it mean only 50% of the property would get a step up basis? My husband and I just created an LLC and we have a house deeded to this LLC, wondering if we should file 1065 or schedule E as disregarded entity to receive the full step up basis in case let's say one of us passes and the other one wants to sell the house. We're in Texas.
I chose to be a multi member LLC when signing up for the EIN but haven't filed our first year tax yet. Now I'm thinking disregarded entity is the way to go for estate planning. If so do we need to let the IRS know somehow or just file it as such the first year?
Thank you.
