Related Party or Unrelated?

[roud]

What is the name of your state (only U.S. law)? California

According to the IRS, a related party is a "member of the family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)"

I have a blood brother who was adopted, when he was young, by my uncle (and his wife); what is he considered by the IRS? A related party or an unrelated one?

Thanks,
RD

 

[davew128]

I honestly don't know the answer to this, as the regulations don't further define this. Technically, you could argue in good faith that legally he ISN'T your brother and the related party rules don't apply. Certainly if he had been adopted AS your brother it definitely would so reasonably the inverse applies as well.

 

[adjusterjack]

I have a blood brother who was adopted, when he was young, by my uncle (and his wife); what is considered by the IRS? A related party or an unrelated one?

From whose point of view? Yours? Or your uncle and his wife?

In other words, do you want to claim him as a dependent or do they want to claim him as a dependent?

How old is he?

Depending on why you want to know, there may be other factors to consider.

Details count.

 

[roud]

From whose point of view? Yours? Or your uncle and his wife?

From the IRS' point of view. The details: I have a property for sale that he's interested in buying. He's planning on buying my property through a 1031 exchange. According to the IRS, a 1031 exchange is illegal if the buyer and the seller and related. He is 35 years old and was adopted when he was 14.

Thanks,
RD

 

[adjusterjack]

From the IRS' point of view. The details: I have a property for sale that he's interested in buying. He's planning on buying my property through a 1031 exchange. According to the IRS, a 1031 exchange is illegal if the buyer and the seller and related. He is 35 years old and was adopted when he was 14.

You're related.

Beyond that, both of you would be wise to consult a tax pro. 1031 exchanges are complicated and the slightest mistake could result in a big tax bill.

 

[Zigner]

You're related.

I disagree - there is no legal relationship between the two.

Beyond that, both of you would be wise to consult a tax pro. 1031 exchanges are complicated and the slightest mistake could result in a big tax bill.

I agree with this.

 

[adjusterjack]

I disagree - there is no legal relationship between the two.

"I have a blood brother."

Are talking native American rituals here?

 

[davew128]

"I have a blood brother."

Are talking native American rituals here?

Are you being deliberately obtuse? The fact is they are not LEGALLY related under state law which is what the IRS looks at. That they be blood siblings doesn't change that.

 

[davew128]

According to the IRS, a 1031 exchange is illegal if the buyer and the seller and related.

Thats not true either.

 

[Stephen1]

"According to the IRS, a 1031 exchange is illegal if the buyer and the seller and related."

Not illegal but there are special rules that apply. Would you believe that some people try to cheat the IRS?

 

[LdiJ]

What is the name of your state (only U.S. law)? California

According to the IRS, a related party is a "member of the family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)"

I have a blood brother who was adopted, when he was young, by my uncle (and his wife); what is he considered by the IRS? A related party or an unrelated one?

Thanks,
RD

Legally you are not brothers, you are cousins.

 

[Zigner]

Legally you are not brothers, you are cousins.

I apologize to the OP - what was said here is correct, so there may be a relationship...just not as siblings.