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In a Related-Party Transaction Where Realized Loss Is Disallowed, When

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Essay

In a related-party transaction where realized loss is disallowed, when can the disallowed loss be used by the buyer on the subsequent sale of the property? In the case of a related-party disallowed loss transaction, can the related- party seller's disallowed loss be used by a taxpayer other than the related-party buyer?


Definitions:

Aortic Arch

The curved portion at the top of the aorta, which gives rise to the major arteries supplying the head, neck, and upper limbs.

Brachiocephalic Trunk

A major blood vessel that arises from the aortic arch and supplies blood to the right arm and the head and neck.

Subclavian Artery

A pair of major arteries located bilaterally, beneath the clavicle, responsible for supplying blood to the upper limbs, neck, and brain.

Axillary Artery

A major blood vessel that carries oxygen-rich blood to the armpit area, upper limbs, and some chest regions.

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