IRC 267 FULL

In Revenue Ruling 71-50, for example, a taxpayer sold shares of stock at a loss to his stepmother in a bona fide transaction. Stepparent relationships also do not qualify. In-law relationships, for example, do not qualify as family relationships under Section 267(b)(1). They do not include other relationships that can arise solely because of a marriage. The only family relationships that qualify under Section 267(b)(1) are those that are identified in the statute.

IRC 267 FULL

В§ 1.267(c)-1(a)(4) gives full effect to any legal adoption. In addition, when determining whether any of these relationships exist, Reg. The term вЂњlineal descendantsвЂќ includes children and grandchildren. The term вЂњancestorsвЂќ includes parents and grandparents. The brothers and sisters may be either whole-blood or half-blood siblings. They include a taxpayerвЂ™s brothers and sisters, spouse, ancestors, and lineal descendants. Such family members are the same as those defined within Section 267(c)(4) for purposes of determining when a person constructively owns stock in a corporation. Д¬ertain family members qualify under Section 267(b) as being related parties. Commissioner, for example, the Tax Court denied a deduction to a party for the loss he sustained in a foreclosure proceeding and which resulted in a judicial sale of his property to members of his family. In addition, the rule prohibiting a loss on a sale or transfer is not dependent upon whether the transfer is a voluntary one. The fact that a transaction may have been bona fide and at fair market value is immaterial. Under Section 267, when a taxpayer sells or transfers property at a loss to a person who qualifies as a related family member under Section 267(b), Section 267(a) prohibits the recognition of the loss. Section 267(b) is referenced in 79 sections throughout the Internal Revenue Code as well as 175 state law provisions for the definition of вЂњrelated taxpayers.вЂќ This article focuses exclusively on Section 267(b)(1) disqualified family members.

Irc 267