1031.Exchange INTELLIGENCE NETWORK
License territory Acquire
TAX & BASIS

Related party

Also called: related person · related-party exchange

⌕ Search dictionary
PLAIN-ENGLISH DEFINITION

A person or entity related to the taxpayer under federal tax rules.

What it means in practice.

Special Section 1031 rules apply to direct and indirect exchanges involving related persons. The definition can include family members and entities under specified ownership relationships.

Why it matters.

Related-party exchanges require early tax review because anti-abuse and disposition rules can apply.

Additional notes.

Special Section 1031 rules apply to direct and indirect exchanges involving related persons. The definition can include family members and entities under specified ownership relationships.

PRIMARY / REFERENCE SOURCES

Read the source material.

irs.gov ↗irs.gov/instructions/i8824irs.gov ↗irs.gov/publications/p544
CONNECTED LANGUAGE

Related definitions.

Tax & BasisTwo-year related-party ruleA rule that can cause deferred gain or loss from certain related-party exchanges to become recognized if either party disposes of the exchanged property within two years, unless an exception applies.Exchange MechanicsDisqualified personA person who cannot serve in certain safe-harbor roles because of specified agency or relationship rules.
KEEP LEARNING

Build the vocabulary before the transaction clock starts.

Explore the federal framework, exchange structures, replacement-property intelligence and professional roles connected to this term.

Open learning centerSearch another term