Step up Basis -Inherited llc interest

agribs — Wed, 15 Oct 2025 23:46:36 GMT

Inherited LLC Interest - Step-up Basis

Two spouses each own 50% in a Rental LLC. The LLC has filed 1065's since inception. Each spouse receives a K-1 and both K-1's are reported on the Joint tax returns. When one spouse dies and the surviving spouse inherits the deceased spouse 50% share, can the surviving spouse get a step-up basis on the inherited 50% interest?

Re: Step up Basis -Inherited llc interest

M-MTax — Thu, 16 Oct 2025 00:25:37 GMT

If you live in a common law state, then one-half of the assets in the LLC get a stepped up basis.

If you live in a community property state where the LLC interests are held as community property, then 100% will get a stepped up basis.

topic Step up Basis -Inherited llc interest in Investors & landlords

Step up Basis -Inherited llc interest

Re: Step up Basis -Inherited llc interest