Related Property Losses

Question 1

no deduction under 267 for any sale to a

Answer 1

267b relative

Question 2

analysis:

Answer 2

start with calculating gain loss 1001; then to 165 if its deductble, subject to 267.

Question 3

relative sale

Answer 3

special rules

Question 4

why do we not allow loss on sale to relative

Answer 4

cant trust valuation- is it part gift part sale?

Question 5

Brother in law

Answer 5

isnt a relative for this purpose

Question 6

brother in law problem

Answer 6

indreict sales- not allowed

Question 7

step transaction doctrine

Answer 7

cant use strawmen!

Question 8

congress sometimes allow

Answer 8

strawmen

Question 9

BIL sale- community funds

Answer 9

seller gets 1/2 loss since 1/2 part sale part gift. since comm funds.

Question 10

267b impacts the ___ msot

Answer 10

seller

Question 11

267 b extends to…

Answer 11

business entities- cant sell at a loss to a entity in which you are majority shareholder - CONSIDERED a relative

Question 12

shares of family

Answer 12

attributed to YOU!

Question 13

while seller cant take loss in relative sale

Answer 13

the buyer takes cost basis, and is allowed to take previously disallowed loss when they sale on a gain- deduct from gain.