An S-corp client of mine is looking to close out the business. He has liquidated most assets with the only item of any value being real estate. A corporation owned by his brother is thinking of buying it.
I was going to tell him to get an appraisal and then sell it for appraised price when I saw this in Publication 17
" You cannot deduct a loss on the sale or trade of property, other than a distribution in complete liquidation of a corporation, if the transaction is directly or indirectly between you and the following related parties..."
Hmm...I believe he IS liquidating this corporation so can he in fact sell this at a loss?
I was going to tell him to get an appraisal and then sell it for appraised price when I saw this in Publication 17
" You cannot deduct a loss on the sale or trade of property, other than a distribution in complete liquidation of a corporation, if the transaction is directly or indirectly between you and the following related parties..."
Hmm...I believe he IS liquidating this corporation so can he in fact sell this at a loss?