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As general concept #1; avoidance is always okay, acceptable & expected; evasion is illegal. As general concept #2: transactions between related parties are not afforded ther same tax treatment as "arm's length" transactions under the controlling entity concept.

The controlling entity concept says that there either is a controlling entity as in a father & son relationship; or two relatives collude to control; husband & wife. In the absence of related party regulations; every adult would sell appreciated assets at a loss to one's children & buy them back at fair market value; giving dad a loss and the child a long term capital gain at a very low tax bracket.

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