Three sisters formed a partnership (each owning 33%). This year the partnership sold rental real estate property at a loss to one of the sister's son. The mother of the son cannot deduct the loss on the sale because of the related party rules. I was thinking the other two sisters could deduct the loss because nephews do not fall under the category of "related party" for the loss rules. But....here is the question. Do the attribution rules kick in? Do they cause in anyway the Aunts' loss to be disallowed?