2 thoughts on “Starting PI Business

  1. TaxMama says:

    This is a very valid point – and one we researched recently.
    If you find that one of the partners is dying, distribute the assets before death.
    Then they will receive a step-up in basis.

  2. Ward says:

    Watch out for tax treatment of any assets that will be held within the Partnership. I received stock out of an estate and it did NOT get a step up in basis at death –because it was held within a partnership. The partnership units themselves, which we inherited, got stepped up. But when we distributed the stock out of the partnership to the heirs, we found out that the stock-assets held within the partnership, did not get a step up–entailing big capital gains taxes.

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