Is a car dealer who trade the car with me considered related party? do i have to fill out form 8824

[Coleen3 · Accepted solution]

No, he is not and you do not.

There are special rules that come into play when you see to a related party. This is from Pub 17:

Losses on sales or trades of property.   You can’t deduct a loss on the sale or trade of property, other than a distribution in complete liquidation of a corporation, if the transaction is directly or indirectly between you and the following related parties.

• Members of your family. This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)