Related party transactions have been on the chopping block many times before.  The most recent Tax Court Case being Ocmulgee Fields.  In this situation a "C" corporation taxpayer sold relinquished property to a third party and acquired the replacement property from a related partnership. The Tax Court properly disallowed a like-kind exchange under Section 1031(f)(4) because the exchange was part of a transaction structured to avoid Federal income taxes. 

Read more