Doing business with a related party—meaning yourself, your family, or the entities you own—is the biggest problem area that exists in tax law, bar none. Period. (With the possible exception of the alternative minimum tax.)
Whenever you have transactions with family or your owned corporations, partnerships, and other entities, you face special rules in the tax law. As Gary and Delores Beecher recently learned, most of the related-party rules produce harsh results.
Gary Beecher owned a C corporation (Cal Interiors, Inc.) ... Log in to view full article.