Sam sells land with an adjusted basis of $35,000 and a fair market value of $50,000 to Cynthia, his wife, for $50,000. Discuss how the tax consequences would differ if Sam and Cynthia had never been married.© BrainMass Inc. brainmass.com June 3, 2020, 11:39 pm ad1c9bdddf
Under Code section 267(a), there is no deduction for a loss generated on a sale of property between related taxpayers. Section 267 does not discuss gains. We know the taxpayers are related as defined in 267 when they are married.
Unrelated taxpayers (never ...
The cited solution of 173 words explains the consequences of the proposed transactions.