Llc real estate
A realestate builder want to sell one of the homes to their adult child at a loss but a loss cannot be taken because it’s a relative transaction. What happens to the costs not covered by what the adult child is paying. Let’s say cost to construct the home was $200k and the daughter will pay $150k to the LLC. Is the extra $50k a gift from the parents? Recorded as a distribution from the LLC to the owner?
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