Assume that Robert sells the Discount Retailer stock to Vicki for the current fair market value. Since Vicki is a related party, what are Robert's tax consequences from this transaction? CHOOSE ALL that apply.

Assume that Robert sells the Discount Retailer stock to Vicki for the current fair market value. Since Vicki is a related party, what are Robert's tax consequences from this transaction? CHOOSE ALL that apply. Related party transaction rules apply to gains as well as losses Losses between related parties are disallowed but can be recovered at the eventual sale to an unrelated party. Robert has a loss that would be realized but not recognized because this is a sale to a related party (IRC Section 267). Thus, there would be no recognized loss associated with this transaction. Examples of related parties include the immediate family, and publicly traded corporations in which Robert owns shares Robert has an economic loss which he could recognize at sale. Dortfolios