Related Party Notes and Transactions: Section 267, Imputed Interest, Disallowed Losses, and Like-Kind Exchanges
Recording of a 110-minute CPE webinar with Q&A
This course will examine the complexities of related party transactions for tax advisers working with closely held businesses and their owners. The panel will explain when imputed interest is required, when it is recognized by the payor and payee, when loss deductions are disallowed versus deferred, and steps tax professionals can take to identify and properly report these affiliated transactions.
Outline
- Related parties and IRC Section 267
- Related parties under IRC Section 267(b)
- Related party loans
- Imputed interest
- Interplay with IRC Section 7872
- Application of NIIT, IRC Section 1411
- Ramifications of noncompliance
- Related party sales
- Loss disallowance
- Examples
- Other transactions
- Installment sales
- Involuntary conversions
- Like kind exchanges
- Other
Benefits
The panel will cover these and other key issues:
- When imputed interest is required to be assessed between related parties
- How is the gain calculated on a subsequent sale of an asset when a loss was disallowed initially under Section 267?
- When is interest income and expense between related parties recognized by the payor and payee?
- What relationships constitute associated parties under Section 267(b)?
- How are like kind exchanges and installment sales affected when between related parties?
Faculty
John P. Barrie
Partner
McLaughlin & Stern
Mr. Barrie graduated from UCLA with a BA in Political Science, from University of California – Hastings College... | Read More
Mr. Barrie graduated from UCLA with a BA in Political Science, from University of California – Hastings College of Law, with a JD, and New York University, with a Master of Laws in Taxation. He is admitted to practice in New York, California, District of Columbia and Missouri. After serving as an Attorney-Advisor to Judge Leo H. Irwin, United States Tax Court and engaging as a partner in an international law firm for over 25 years, he joined McLaughlin & Stern as a partner and chair of the Tax Practice Group, in 2022. His practice involves all phases of both a federal and SALT tax controversy tax practice as well as an extensive domestic and cross-border tax transactional practice.
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Marcus E. Dyer, CPA, JD
Principal, Team Leader of Tax Controversy
Withum Smith+Brown
Mr. Dyer manages and reviews all aspects of federal and state tax compliance for C-corporation, S corporation and... | Read More
Mr. Dyer manages and reviews all aspects of federal and state tax compliance for C-corporation, S corporation and partnership returns, including consolidated C-corporation returns. He advises businesses on a wide array of tax matters including but not limited to reorganizations and employee benefits. He manages and reviews all aspects of the preparation of high net worth individual returns and conducts tax research on federal and state tax issues. He also handles tax controversies, including at the examination, appeals and collections stages.
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Dean L. Surkin, JD, LLM
Professor (Adjunct)
Pace University Graduate School of Business
Mr. Surkin is an attorney engaged in private practice in the New York metropolitan area. He recently retired from the... | Read More
Mr. Surkin is an attorney engaged in private practice in the New York metropolitan area. He recently retired from the position of Tax Director at a regional CPA firm based in New York City. Prior to that, Mr. Surkin was a partner at Surkin & Handlin, a boutique firm that handled real estate and tax matters. He is a tax attorney with broad-based experience in tax planning and research, has litigated major cases in the fields of taxation, probate and general commercial matters, and has been peer-reviewed by Martindale-Hubbell. Mr. Surkin holds the highest rating for legal ability and ethical standards, AV. His published articles on tax law have appeared in peer-reviewed journals, practitioners’ journals, and the popular press. Mr. Surkin also writes science-fiction short stories about the adventures of his granddaughters and their dog visiting historic events in their uncle’s time machine (their uncle is also a dog) and serves on the Board of Directors of the Westchester Community Orchestra.
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