Losses on the sale of property between a taxpayer and his/her more than 50-percent-owned corporation are disallowed.

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According to the IRS, losses on the sale of property between a taxpayer and his/her more than 50-percent-owned corporation are disallowed under section 267 of the Internal Revenue Code. This is because such transactions are considered related party transactions and are subject to special rules to prevent abuse of tax laws.

Losses on the Sale of Property Between a Taxpayer and His/her