Which of the following is true regarding disallowed losses between related taxpayers?
A. The tax laws essentially treat related parties as the same taxpayer.
B. The holding period of the related person begins over.
C. The related person always receives a carryover basis.
D. The seller's realized loss is deferred until the buyer sells the assets.
E. None of these.
Answer: A. The tax laws essentially treat related parties as the same taxpayer.