Sibling Buyout Audit 2026: The "Loss Disallowance" Trap & Step-Up Basis Rules скачать в хорошем качестве

Sibling Buyout Audit 2026: The "Loss Disallowance" Trap & Step-Up Basis Rules

You and your siblings inherited a house. You want to keep it, so you agree to buy them out. You agree on a fair price, write up an IOU, and shake hands. You think you just kept the home in the family. You are wrong. You just walked into the "Related Party Trap." Transactions between siblings are viewed with extreme suspicion by the IRS. If the property dropped in value since the date of death, IRC Section 267 bans your sibling from deducting that loss. If you wrote a simple promissory note without recording a mortgage deed, IRC Section 163(h) bans you from deducting the interest. And if you gave them a "family discount," you created a mess of "Part Sale, Part Gift" rules that ruin your future tax basis. As The Finance Observer, I’ve performed a forensic review of IRC Section 1014 (Step-Up Basis) and the strict "Acquisition Indebtedness" rules to explain why a handshake deal is a tax disaster. In this video, we dissect the "Split Holding Period," why you must "perfect" the security interest to save the deduction, and the specific legal billing strategy you need if you end up in court. FORENSIC BREAKDOWN: 0:00 The "Family Myth": Why a sibling buyout is a complex tax event, not a favor 00:52 The Foundation: IRC Section 1014 (Stepped-Up Basis) & The Community Property Advantage 02:14 The Trap #1: IRC Section 267 (Why siblings cannot deduct losses on buyouts) 03:15 The "Family Discount": The "Part Sale, Part Gift" nightmare (Treasury Reg 1.1015-4) 04:10 The Trap #2: IRC Section 163(h) (Why a handshake IOU kills the mortgage interest deduction) 04:59 The Solution: Why you MUST record a Deed of Trust to "perfect" the security interest 05:11 The Trap #3: IRC Section 7872 (Imputed Interest on 0% family loans) 05:41 The Lawsuit: Partition Actions & United States v. Gilmore (Origin of the Claim) 07:14 The Strategy: "Bifurcating" Legal Fees (Capitalizing Title defense vs. Deducting Income production) 07:38 The Trap #4: The "Split Holding Period" (Why half your house is Long-Term and half is Short-Term) 08:42 The Compliance Checklist: Form 8949 (Code L), Form 709 (Gift Tax), and Form 1099-S DISCLAIMER: I am The Finance Observer. This content is for educational purposes only. Transactions between related parties (like siblings) are subject to strict scrutiny. IRC Section 267 disallows the deduction of losses on sales between family members. IRC Section 163(h) requires that debt be secured by a qualified residence to be deductible. Always record a mortgage or deed of trust to substantiate acquisition indebtedness. Consult a qualified Real Estate Tax Attorney.