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Tax consequences to Sam and Cynthia of married vs unmarried.

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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.

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The cited solution of 173 words explains the consequences of the proposed transactions.

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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 ...

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