Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What if a taxpayer purchased a RC asset, such as an existing building, from the taxpayers parents?

April 26, 2017ASSET building existing Parents RC taxpayer

0

Posted

What if a taxpayer purchased a RC asset, such as an existing building, from the taxpayers parents?

1 Answer

0

Posted

The 0-percent capital gains rate is not available for transactions between related parties. “Related persons” include sons, daughters, parents, stepchildren, stepmothers, stepfathers, in-laws, and other persons treated as dependents under the tax code. Similar restrictions apply to sales to majority shareholders or partners of the business.