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Posted

Taxpayer purchased property several years ago to help daughter who could not receive financing. Daughter paid loan payments directly. During 2008, they "sold" the property to their daughter at a significant loss. I believe this is a non deductible loss due to related party. Client of course would like to deduct the loss. Deductible or not?

Posted

IRC section 267 states as follows:

(a) In general

(1) Deduction for losses disallowed..

No deduction shall be allowed in respect of any loss from the sale or exchange of property, directly or indirectly, between persons specified in any of the paragraphs of subsection (B).

.......

(B) Relationships..

The persons referred to in subsection (a) are:

(1) Members of a family, as defined in subsection ©(4)

****

I vote 'not'

Posted

Dang it! I did NOT intentionally put in those **** winking sunglass faces!

When you type an "(" and then the letter "b" you have to leave a space between them or it displays as a winking sunglass face.

Posted

Thanks, Bart. Hopefully I can remember that. I really hate those things!

When you type a "(" (open paren) then a "c" and then a ")" (close paren) and do not leave any spaces you get © (the copyright symbol) instead of ( c ).

Posted

how do guys know all these tricks. I was planning on go back after 15th and look at the post that talked about th F keys to learn them now new ones. does it work on all websites or just this one?

K C taught me.

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