Final answer:
In the case of transferring income-producing or business property to a related taxpayer and disallowed loss, the value of the loss is indeed relevant.
Step-by-step explanation:
In the case where income-producing or business property is transferred to a related taxpayer and a loss is disallowed, the value of the loss becomes relevant. This is because the disallowed loss may have an impact on the related taxpayer's taxable income. If the loss is disallowed, it cannot be used to offset any other income or reduce the related taxpayer's tax liability.
For example, let's say a business transfers a property to a related taxpayer and incurs a loss of $10,000 on the transaction. If the loss is disallowed, the related taxpayer will not be able to deduct that loss from their own income. As a result, their taxable income will be higher, potentially resulting in a higher tax liability.
Therefore, the correct answer is False. The value of the loss is indeed relevant when income-producing or business property is transferred to a related taxpayer and a loss is disallowed.