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This is not the theory discovered by Einstein, but the one that states that certain tax advantages may be disallowed if you sell an asset to someone (or a company) that the tax code calls a “related party.”
Simply put, selling a capital asset at a loss to any of the following entities will cause the loss to be disallowed.
- Children or grandchildren
- Parents or grandparents
- Brothers or Sisters
- A company that is more than 50% controlled by you (directly or indirectly)
Although there is no current loss allowed, there is still a tax benefit remaining.
Clients can email us for more information.
David Conley
David is a partner at Smith, Conley & Associates, PC. In addition to writing and tax consulting, he is active in the pro-life community serving as President of the Fayette County Right to Life chapter of Georgia Right to Life.
He is also a founding Board Member and Finance Director of the Fayette Pregnancy Resource Center and serves on the Board of the National Equal Rights Institute.
He is also a founding Board Member and Finance Director of the Fayette Pregnancy Resource Center and serves on the Board of the National Equal Rights Institute.
Latest posts by David Conley (see all)
- Tax Reform in picture format:
Our infographic explains 10 key elements of tax reform
- November 9, 2018 - What happens when the heirs lose the Will?:
Here's what one family was forced to do.
- September 25, 2018 - IRS Amnesty Program ends September 28!:
Non-reported foreign bank accounts will cost you dearly
- September 24, 2018
