InstantForum.NET v4.1.4California Society of CPAshttp://forums.calcpa.org/forums@calcpa.orgWed, 16 May 2012 17:59:39 GMT20http://forums.calcpa.org/Topic59-2-1.aspxMy question is: What asset do I step-up for $500,000 in a 754 election and over how many years.</P><P>The partnership is in the business of renting mini-storage spaces. The partnership built the buildings etc on lease property in 1984. The annual lease payment is $103,000. The lease was for 30 years, ending October 2013. All fixed assets reverts to the landowner on October 2013.</P><P>The value in the 706 was based on a rental income stream over 10 years (years 2003 - 2013). The decedent died October 2003.</P><P>There are various fexed assets (building, etc) and improvements of $1.4 mil and accum depreciation of 1.3 mil; fully amortized software of $6,000 and cash of $40,000.</P><P>My research so far says I'm to allocate basis to cash, fixed assets, and intangibles and depreciated according to MACRS (39 years!). This would leave me with a lot of basis in fixed assets when the lease ends in 10 years. </P><P>I am hoping for depreciation/amortization of a land lease of 10 years.</P><P>Thanks for your input.Thu, 19 Jan 2006 13:11:24 GMTLindaN