For constructive ownership purposes,which of the following are related parties under § 267?
A)I - IV.
B)II - IV.
C)III and IV.
D)IV only.
E)None of the above are related parties.

Question

For constructive ownership purposes,which of the following are related parties under § 267? 
A)I - IV. 
B)II - IV. 
C)III and IV. 
D)IV only. 
E)None of the above are related parties.

Quizplus · Accepted Answer

According to § 267, related parties include:
I) An individual and his/her spouse, ancestors, and lineal descendants.
II) An individual and a corporation in which more than 50% of the value of the outstanding stock is owned directly or indirectly by or for the individual or his/her family.
III) Two corporations that are members of the same controlled group of corporations.
IV) A grantor and fiduciary of any trust and the beneficiaries of the trust.

Therefore, options III and IV are related parties under § 267.

For Constructive Ownership Purposes,which of the Following Are Related Parties