Which of the following is NOT considered a related party for the purpose of limitation on accruals to related parties?
A)Spouse when the taxpayer is an individual.
B)A partner when the taxpayer is a partnership.
C)Brother when the taxpayer is an individual.
D)A minority shareholder when the taxpayer is a corporation.
E)All of these are related parties.

Question

Quizplus · Accepted Answer

A minority shareholder when the taxpayer is a corporation is not automatically considered a related party for the purpose of limitation on accruals to related parties. Related parties typically include family members (such as spouses and brothers for individuals), partners in a partnership, and majority shareholders in a corporation, but not necessarily minority shareholders without significant influence or control.

Which of the Following Is NOT Considered a Related Party