InstantForum.NET v4.1.4California Society of CPAshttp://forums.calcpa.org/forums@calcpa.orgWed, 16 May 2012 17:58:50 GMT20http://forums.calcpa.org/Topic58-2-1.aspx[quote][b]Anonymous (1/19/2006)[/b][hr]Question: A Sched C client died. Sched C was a glass installation business, started by grandfather years ago. A valuation is in progress by the probate referee. The only assets on the balance sheet are several trucks, adapted for carrying large sheets of glass.<BR><BR>When we get the valuation, is the Sched C entitled to a step-up in basis? If so, which assets? Do we allocate something to the trucks? Or is some (or all) the step-up allocated to goodwill?<BR><BR>Bob Abelson[/quote]<P>sch c is not a separate legal business, as i understand it... i believe that it is a group of assets (including goodwill) that are owned by the proprietor (this is probably more a style issue than anything). the truck is valued at date of death value, the goodwill is valued then, as are each of the assets. i would show them all together as "assets of sole proprietorship known as...:" and then list each asset with its value. we also show debt in the same listing. i indent and number separately each asset and/or liability (negative asset).<P>and so, yes there is a step-up... and usually a new asset (goodwill)! if the business is sold post-death, its often the goodwill that is the main asset being sold (in a healthy sole prop)Thu, 19 Jan 2006 15:17:10 GMTAllmon