R3: Related Party Transactions Flashcards
1
Q
Related party losses
A
not deductible
2
Q
Relatives for the purposes of defining a “related party”
A
Children, spouses, siblings
3
Q
A corporation and shareholder who owns more than 50% of stock
A
Are considered related parties
4
Q
Constructive ownership rules
A
Stock owned by a taxpayer’s family members are treated as if the taxpayer owned them. The percentage ownership of each family member’s % of ownership is added.
