Discussion:Related party loss - personal residence
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Discussion Forum Index --> Basic Tax Questions --> Related party loss - personal residence
Discussion Forum Index --> Tax Questions --> Related party loss - personal residence
| 4 February 2009 | |
| If a parent purchases their child's personal residence at a loss to the child, does the parent get to use the child's basis in the residence as their basis under the related party loss rules? Or does this only apply to business or investment property? | |
| 4 February 2009 | |
| Assuming the home is sold for less than fmv, the parent's basis for gain purposes will be the higher of the amount the parent pays the child for the residence or the child's adjusted basis in the home. Reg ยง 1.1015-4(a). | |
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