James is a 50% partner in JL Partnership. James sells land at a loss of $20,000 to the partnership. Do you agree that James's loss involving the sale of the land to the partnership should be disallowed on his Form 1040? Why or why not?© BrainMass Inc. brainmass.com June 3, 2020, 10:10 pm ad1c9bdddf
Yes, the loss on the land sold to a partnership in which the seller has a 50% interest should be disallowed on his Form 1040.
First the transaction is not " At Arms ...
This solution is an opinion backed by tax regulations concerning a partners dealings with a partnership.