Like-Kind Exchange of Loss Property With A Relative
Section 267(a) of the tax code disallows deductions for losses resulting from sales to related persons. However, the basis of the property received by the taxpayer in a like-kind exchange with a relative is governed by section 1031. In other words, the taint of disallowance under section 267 does not carry over to the new asset. The loss is preserved in the basis of the new property when the new property is sold.
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Famous quotes containing the words exchange, loss, property and/or relative:
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—Primo Levi (1919–1987)
“Love seeketh only self to please,
To bind another to its delight,
Joys in another’s loss of ease,
And builds a Hell in Heaven’s despite.”
—William Blake (1757–1827)
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—Rutherford Birchard Hayes (1822–1893)
“She went in there to muse on being rid
Of relative beneath the coffin lid.
No one was by. She stuck her tongue out; slid.”
—Gwendolyn Brooks (b. 1917)