Posted by JHyre in Ohio on February 21, 2002 at 12:59:48:
I tend to agree on both counts. Interestingly, a home in a SMLLC should not lose the exemption, but getting a state judge to limit the liability on your personal residence (e.g.- respect the LLC and not pierce the veil) might be an uphill battle.
In re death step-up: The basis of the entity interest (e.g.- corporate stock or interests in an LLC) does get stepped up, the assets do not in a corporation… though the assets MIGHT get a step-up in a multimember LLC IF a so-called “Section 754 election” is in place- I’ve not researched the issue in that context, but the argument is definitely there.
John Hyre