Disallowed Loss Question

Question

This is something mentioned in my textbook, and it made me curious. If I sell property to a related party at a loss it's non-deductible, however if they later sell it at a gain I can deduct my loss up to the amount of their gain. Now, let's say I sold property to a relative at a loss, and subsequently had a falling out with that relative so we weren't talking. However, I found out through the grapevine that the property had been sold again, but my relative who now hates me doesn't feel like letting me go through his sales records. Since it would have a direct impact on my taxes, would I have a legal right to know the sales price of this transaction that I wasn't involved in?

Answer 1

I don't think you have a legal right to find out the sales price but in every state real property sales are recorded and that information is typically available to the public at the county recorder's office where the property is located. There will likely be a small fee for getting a notarized (or otherwise certified) copy of the sale. Moreover, most counties have this information online for free.