@RickinMS wrote:
In 2022, I sold my share to another sibling. I'm not sure if this is "arm's length" even though the sale was based upon a recent (2022) appraisal. Is this arm's length? If not, how should the proceeds be handled in Turbo Tax?
This scenario is covered by the related party rules of Section 267 of the Code which, among other things, disallows losses with respect to transactions between related taxpayers (which includes siblings).
See https://www.law.cornell.edu/uscode/text/26/267
No loss can be recognized by you; your loss is entirely disallowed regardless of whether the property was sold to your sibling at fair market value or otherwise.
Per Section 267(d), if your sibling ever does sell the property at a gain, then the previously disallowed loss can be used by your sibling to offset all or part of that gain (and note that this presumes the property was not being held for personal use for which no loss can be recognized, in any event).
