Which of the Following Is True with Respect to the Related

question 40

Multiple Choice

Which of the following is true with respect to the related party rules?

• A)Bill sells stock to his sister for a $3,000 loss.Bill can deduct the loss on his tax return.
• B)A taxpayer's uncle is a related party for purposes of Section 267.
• C)A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party.
• D)Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder.
• E)None of the above are true.