Sale of business asset with a Sec 754 step up in basis
What is the correct way to report the sale of a business asset that has a section 754 step up in basis on a partnership information return? A building and land were sold. Building With step up. W/o step up Sale Price: 380,000. 380,000 Cost: 581,175. 482,902 Depreciation: 460,008. 438,355 Adjusted Basis: 121,167. 44,547 Gain: 258,833. 335,453 Land. With step up. W/o step up Purchase Price : 95,000. 95,000 Cost. 117,000. 97,000 Loss. (23,000). (2,000) The total step up was 120,090. 20,170 had been depreciated. Do you report the loss of 99,920 as a separate item on that partner’s k1? For example: Gain on sale: 130,000, Loss on step up: 99,920 OR does the partnership make this calculations and report your Gain on Sale as 30,080 on the k1? I apologize if I’m not asking the question clearly.
