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My understanding is not accurate. Here is from Barron's

Transaction that is conducted AS THOUGH the parties were unrelated, thus avoiding any semblance of conflict of interest.

For example, under current law parents may rent real estate to their children and still claim business deductions such as depreciation as long as the parents charge their children what they would charge if someone who is not a relative were to rent the same property.
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Replies, comments and Discussions:

  • 工作学习 / 外语学习 / 请问这句话是什么意思,"The transaction must be at arm's length." 谢谢.
    • 交易必须在一个人伸手可及的范围内完成?
    • Two parties in the transaction have to be unrelated to one another. 不能是关联交易
        • Thanks man
      • My understanding is not accurate. Here is from Barron's
        Transaction that is conducted AS THOUGH the parties were unrelated, thus avoiding any semblance of conflict of interest.

        For example, under current law parents may rent real estate to their children and still claim business deductions such as depreciation as long as the parents charge their children what they would charge if someone who is not a relative were to rent the same property.
    • 正常交易
    • at arm's length 就是在一个手臂范围,意思就是不能离你太近,也就是说,交易必须是正常交易,而不是跟亲戚做的交易.你在看税法吧,税法中提到了无数次.
      • 谢谢大家,明白多了.