4 ms·

Not if the fair market value can be proven otherwise. It’s just fraud

• jjmarr 2y ago
  It's not inherently fraudulent to sell something for below market value. If I sell something I bought for $1 million for $1 in an arm's length transaction, I'm realizing a loss of $999,999 even if the asset was worth $500,000. And it'd be a rational decision if it cost me $5 million in opportunity costs to do that $500k sale.
  • nradov 2y ago
    That's not how US capital gains tax law works. It's legal to sell something at below market value, but you have to use the fair market value when calculating a loss for tax purposes. Of course some people cheat.
    • tonygiorgio 2y ago
      Should be easy to determine when a 409a evaluation was done.
    • jjmarr 2y ago
      I'm reading the IRS website and it says: https://www.irs.gov/taxtopics/tc409 https://www.irs.gov/taxtopics/tc409 > When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Am I misinterpreting this?