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Joe wants to sell stock to his brother Michael. The fair market value of the stock is $10,000 and as this stock is traded on
Joe wants to sell stock to his brother Michael. The fair market value of the stock is $10,000 and as this stock is traded on a national exchange it is very easy to demonstrate that this price is a fair price. Joe's basis in the stock is $30,000. Will the Related party disallowance rules from section 267 still apply? What abuse are the IRS trying to prevent with the 267 rules?
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