What’s worse than losing money on a sale?
Losing your tax deductions for that loss on sale.
That’s right. If you sell property to a “related party,” you may not deduct your loss on sale.
What’s more, the loss you can’t deduct no longer belongs to you. It moves to the related party and can turn a bad situation into a holy mess!
Want to find out how to avoid costly problems that can rob you of some important deductions?
Read my new article titled Tax Tips: Beware: Selling to a Related Party Can Kill Your Tax Losses!
Three ways our fact-filled article can help you:
- For starters, we’ll tell you which parties are considered “related” to you. Uncle Sam is quite clear about this. IRS Section 267 states that there are four categories of related parties. And don’t think you can guess what they are. To get the right information, read the full article.
- We’ll explain the basic law in detail. Plus, we’ll cover the special rules that govern partnerships and LLCs, constructive ownership provisions, relief for liquidations and divorce, and more. You’ll get the whole story when you read the full article.
- We’ll tell you how to get around the loss disallowance rule. Here’s the good news… you can come out in good shape if you sell to remotely related persons. (We’ll list who they are.) There are also proactive measures you can take which we’ll explain fully when you read the full article.