Is it possible to get step up in basis with shared LLC ownership?

[Account Closed]

Right now I do not have any ownership in my mom's LLC (she is a multi-family investor in the US) but I will be joining her real estate business in the future. I currently own and run a separate c corp which I will exit. From my understanding, the minute I join her LLC as an owner, I would lose the step-up in basis that I would get when she dies. Is that correct, or would it be that Ilose the step up in basis on the % of my ownership and retain the step up in basis on her %? One way around this is to have her hire me as a W-2 so that she remains the only owner, but I am trying to avoid earned income. Are there other creatives strategies to organize this succession plan for legacy? I am planning to work with a tax attorney and estate planner on this, but just curious to hear thoughts from others with experience in family businesses. Thanks.

[Sean Morrison]

This is a bit confusing. Are you talking about the step up basis that comes from an inheritance? Or are you talking about a 1031 exchange? They are different things, though they can work together if properly planned. But because they are different, they have vastly different rules. You really need to talk with an attorney who understands both 1031s and estate planning, because you're covering two areas of legal expertise.