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.
Read more about this topic: Like-kind Exchange
Famous quotes containing the words exchange, loss, property and/or relative:
“I cannot say what poetry is; I know that our sufferings and our concentrated joy, our states of plunging far and dark and turning to come back to the world—so that the moment of intense turning seems still and universal—all are here, in a music like the music of our time, like the hero and like the anonymous forgotten; and there is an exchange here in which our lives are met, and created.”
—Muriel Rukeyser (1913–1980)
“Intimacies between women go backwards, beginning with revelations and ending up in small talk without loss of esteem.”
—Elizabeth Bowen (1899–1973)
“It is a well-settled principle of the international code that where one nation owes another a liquidated debt which it refuses or neglects to pay the aggrieved party may seize on the property belonging to the other, its citizens or subjects, sufficient to pay the debt without giving just cause of war.”
—Andrew Jackson (1767–1845)
“Are not all finite beings better pleased with motions relative than absolute?”
—Henry David Thoreau (1817–1862)