RELATED-PARTY EXCHANGES
01.Core Concepts
• Deferred gain is recognized in year of disposition if: • Exchange occurs between related parties • Related party disposes of the property within 2 years • Does not apply if: • Either party dies before sale • Tax avoidance is not a motivation • Related party • Brothers and sisters (whole or half blood or adopted) • Spouses (results in carryover basis) • Ancestors • Descendants • Controlled corporations (>50% equity interest)