USA Selling Equipment to a Related Party

[TSkaggs]

When selling equipment to a related party can the purchaser capitalize the relocation and installation cost of the equipment like they can if it were a purchase from an unrelated party?

 

[smallbushelp]

Sure. It's the recognition of gain or loss and the recording of basis that differs in related party transactions. You can check out IRS Publications 17 and 551, and I think also 544. They deal with these issues.