Maria owns a 60% interest in the KLM Partnership. Four years ago her father gave her a parcel of land. The gift basis of the land to Maria is $60,000 . In the current year, Maria had still not figured out how to use the land for her own personal or business use; consequently, she sold the land to the partnership for $50,000 . The partnership immediately started using the land as a parking lot for
its employees. Maria may recognize her $10,000 loss on the sale.
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: Because Maria owns more than a 50% interest in the partnership's capital or profits, Maria may not deduct a loss on sale of property to the entity.
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