Your client, Aaron, wants to sell a building he owns to his cousin Jane. The fair market value $($FMV$)$ of the building is $$200,000.$ The propertys adjusted basis is $$225,000.$ Aaron asks you if he will be able to deduct the $$25,000$ loss on the property if he sells it to his cousin. Can Aaron recognize the loss?a$.$ Yes, but only if he sells it to her for its true fair market value of $$200,000$; otherwise the loss is disallowed.b$.$ Yes, because cousins are not considered related parties for purposes of loss disallowance.c$.$ No$,$ because Aaron and his cousin are considered related parties for purposes of losses and losses between related parties are not allowed under IRC $267.$d$.$ No$,$ because Aaron and his cousin are considered related parties for purposes of losses and losses between related parties are not allowed under IRC $265.$e$.$ Yes, but only if Aaron and his cousin sign an agreement stating that the sale is bona fide; otherwise the loss is disallowed.