An arm's-length transaction
may be defined as a transaction between two or more independent, unrelated, and well-informed parties looking out for their individual interests.
The BOR disregarded the actual sale price from the sheriff's sale because, in its view, the sale was not an arm's-length transaction
* A partner's sale of a significant partnership interest in an arm's-length transaction
The definition of a flipped property is a home that is sold in an arm's-length transaction
for the second time in a 12-month period based on publicly recorded sales data.
One of the policies intended to keep Fannie and Freddie in an ''arm's-length transaction
'' prohibits property sales to nonprofits who resell to the original homeowner.
In the trial court's view, these mechanisms gave the buyout the characteristics of an arm's-length transaction
with an actual third-party purchaser and, thus, warranted the more deferential standard of review typically applied in such cases.
Ironically, under the rule change that generated the original lawsuit, a stranger could purchase a reverse mortgage home for the fair market value (an "arm's-length transaction
," according to the original Mortgagee Letter), where an heir could not.
Consequently, the court said, it did not need to determine the third factor, whether the restrictions were comparable to those of a similar arrangement entered into by persons in an arm's-length transaction
Counterfactual experiments show why cross-border transmission may be much higher for a multinational transaction than for an arm's-length transaction
. In the structural model, firms' pass-through of foreign cost shocks is on average 29 percentage points lower in arm's-length transactions
than in multinational transactions because the higher markups from a double optimization along the distribution chain create more opportunity for markup adjustment following a shock.
If, in a commercial arm's-length transaction
, the recipient of a payment is taxed on an income basis, TEI believes it would be appropriate to permit the purchaser to treat the payment as an expense on income account.
In Bongard, the IRS argued that this was not an arm's-length transaction
since one could not occur between related parties.