I am receiving payments on an installment loan. I sold stock in an S Corporation to my brother in law. Is he considered related?

posted

Connect with an expert

1 Best answer

Accepted Solutions

I am receiving payments on an installment loan. I sold stock in an S Corporation to my brother in law. Is he considered related?

According to instructions for form 6252, it would appear that you aren't considered to be related.

See

https://www.irs.gov/uac/form-6252-installment-sale-income

Also see the rules referenced for related party under IRC Sections 453, 318, and 267

https://www.law.cornell.edu/uscode/text/26/267

https://www.law.cornell.edu/uscode/text/26/453

https://www.law.cornell.edu/uscode/text/26/318

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

View solution in original post

1 Reply

I am receiving payments on an installment loan. I sold stock in an S Corporation to my brother in law. Is he considered related?

According to instructions for form 6252, it would appear that you aren't considered to be related.

See

https://www.irs.gov/uac/form-6252-installment-sale-income

Also see the rules referenced for related party under IRC Sections 453, 318, and 267

https://www.law.cornell.edu/uscode/text/26/267

https://www.law.cornell.edu/uscode/text/26/453

https://www.law.cornell.edu/uscode/text/26/318

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

Still have questions?