posted

Is a stepchild considered a related party?

This is in regards to selling a property to my stepson...

1 Best answer

Accepted Solutions

Is a stepchild considered a related party?

No, your stepson is not a related party.

This is the IRS definition of related parties:

Related parties for the purposes of Code Sec. 1031(f) are defined by Code Secs. 267(b) or 707(b), and include:

Family members.

Family members are related parties. The definition of family members is limited to siblings, spouses, ancestors and lineal descendants. Thus, it does not include aunts and uncles, or nephews and nieces. It also does not include in-laws or stepparents. Therefore, a mother would not be a related party to her son-in-law or stepson.

Importantly, family members also do not include domestic partners.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies

Is a stepchild considered a related party?

No, your stepson is not a related party.

This is the IRS definition of related parties:

Related parties for the purposes of Code Sec. 1031(f) are defined by Code Secs. 267(b) or 707(b), and include:

Family members.

Family members are related parties. The definition of family members is limited to siblings, spouses, ancestors and lineal descendants. Thus, it does not include aunts and uncles, or nephews and nieces. It also does not include in-laws or stepparents. Therefore, a mother would not be a related party to her son-in-law or stepson.

Importantly, family members also do not include domestic partners.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Is a stepchild considered a related party?

While your stepson is not a related party to you, he is a related party to your wife. So my question is, who owns the property? If it's just you then there's no problem. If it's you and your wife then it would appear that he is a related party.

Found what you need?

Already have an account? Sign In

(4.6/5 | 291,310 reviews)

Top help articles

view all

What is the Child Tax Credit?

Do I need to enter a 1095-C?

Where do I enter my estimated tax payments?

Still have questions?

Make a post

Or browse the Forums

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Quick links

First Time Here?

Community Do's & Don'ts

Upcoming Events

Ready to file your taxes?

Meet your expertsAll Experts >

Employee Tax Expert

I am an Enrolled Agent. I worked for the I.R.S. for 33 years. I spent my last 11 years at the I.R.S. in Mand...

Employee Tax Expert

CPA

Employee Tax Expert

EA with 18 years of tax experience.

Employee Tax Expert

I am an EA with 12 years of tax preparation experience.

Employee Tax Expert

Been with Intuit for going on 6 years now. Been part of TTLive, Full Service TTL, was part of Accuracy guaran...

v