Assume you have only 1 asset on the books. With th 754 you now have 2. The original and the step-up. The step-up date in the date of death so you do no get an entire year's depreciation unless they died on 01/01. But even then, depending upon the asset regular conventions are used. For example, 39 yr commercial real estate, 15 yr land improvements. Since these assets are typically straight-line you can use them. If a cost-seg was done at the time of the 754 appraisal you can get more accelerated depreciation on those assets. Realize, intangible assets are not stepped-up.  I use Fixed Asset Manager and anytime I have a step-up I create a 2nd fixed asset file and do not import it. I used the bottom line depreciation number to enter onto the K-1 as a 754 transaction.

Thanks @dascpa!  Appreciate your input.  Just a quick follow-up:

My client is a logging company so most of its assets are 7-yr equipment.  I was under the impression that this 'second' asset would have to be SL convention, but if 200DB HY is acceptable, I'm pretty sure the partners would be in favor of that! 😉

Lastly, can i set up a single 754 asset to 'house' the step up amount?  Or am I required to set up a new asset for each one that was used in the step up in basis?

Set up each asset by category, ie 7 yr, 15 yr etc.  You don't have to do it as a special 754 allocation since each remaining partner will be getting the deduction. You can just report it as regular depreciation.  If only 1 partner was getting it, then you have to do it as a special allocation.  

I have only done 754's for real estate never for equipment.  There are new 754 questions on the return and attachments needed.