topic How attach a Section 754 election statement to 1065 for efile? in Business & farm

How attach a Section 754 election statement to 1065 for efile?

lw15 — Mon, 09 Mar 2026 04:57:28 GMT

LLC member passed away with their interest transferred to beneficiaries. Assets of the LLC included land and cash, so completed a Section 754 election statement to identify the step up in basis (FMV greater than original basis) in for the deceased member's heirs. However, not clear how to add that attachment to form 1065 before e-filing. TT did have a process for attaching form 8453-PE, but haven't found a way to attach the Section 754 election statement even though the need for that statement even though answered 'Yes' on form 1065 Schedule B questions 10a and 10b (which requires a statement).

Re: How attach a Section 754 election statement to 1065 for efile?

Anonymous_ — Fri, 25 Feb 2022 18:45:55 GMT

There is a distinct possibility, in fact it is probable, that you will have to print and mail your return.

You can create a file where the 8453-PE is combined with another statement, which will allow you to e-file, but it is unclear whether the IRS will receive the statement in an acceptable format.

Re: How attach a Section 754 election statement to 1065 for efile?

lw15 — Fri, 25 Feb 2022 21:02:59 GMT

Thanks, never thought about trying to combine in the same file with form 8453-PE. Will try that and see if get any errors.

Re: How attach a Section 754 election statement to 1065 for efile?

Anonymous_ — Fri, 25 Feb 2022 21:05:59 GMT

You should not get any errors because the program will simply see a file that is attached.

My concern is whether the IRS will receive the statement in a form that is machine readable (or whether anyone will pull the return if it is not - or whether it ever actually reaches the IRS).

Re: How attach a Section 754 election statement to 1065 for efile?

lw15 — Fri, 25 Feb 2022 21:30:20 GMT

Guess will have to mail the forms in after all.

You were correct about it allowing me to scan the extra sheet in the file and attach. Could see the second sheet when viewing the attachment, but when previewed the data that was going to be e-filed with the IRS, only the first page (form 8453-PE) was visible. Thus the IRS would have never received the Sec 754 election statement.

Thanks again for your assistance.