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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)
- The biggest no-brainer for 2019 tax planning:
It's never too early to start saving 2019 taxes
- January 16, 2019 - What a difference a name makes!:
Are you a dealer or investor? Here's how to tell the difference!
- January 10, 2019 - Is it too late to accrue a bonus for last year?:
Not if done correctly
- January 9, 2019
