When Clients Flout the Related Party Rules of Section 1031
In this post, we will go over the basics of Teruya Brothers Ltd. v. Commissioner (2009) and then discuss why CPAs need to pay close attention.?Teruya involves the “related party” rules of Section 1031, which?are among the most perplexing and least understood. In fact, this case made?a major contribution to how these rules operate in reality.?