On March 10, 2021, Juan sold land (adjusted basis = $150,000) to Richard for its FMV of $130,000. Juan had purchased the land in 2009 as an investment but now is having cash flow issues and decided not to wait any longer for market conditions to improve. Richard is the husband of Juans sister, Maria. Richard and Maria have been married for many years and live in the same state (as does Juan). How much of the loss can Juan deduct in the current year if he has no other capital transactions and his taxable income without considering this transaction is $75,000? If some or all of the loss is not deductible in 2021, what happens to the non-deductible portion?

Consider your tax knowledge, court cases that you are familiar with, and IRC 267. Be sure to explain your reasoning as well as any assumptions you make.