Related Party Transactions
Author: A.J. Reynolds
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Related party rules are factors that often affect characteristics of income and deductions like the timing or character, and may even prevent losses and deductions completely. This course will provide a basic overview of the assortment of Internal Revenue Code provisions that make up related parties and rules applicable to these issues. Over the years Congress has instituted various measures to safeguard from related party manipulations.
The effect of ascertaining certain taxpayers as “related” may cause a transaction to achieve federal income tax consequences substantially different than a transaction accomplished by parties that are not related. Because the core definition of “related parties,” as found in IRC §267, is frequently cross-referenced by other sections throughout the Internal Revenue Code, an analysis of this definition is paramount in determining the impact of other sections, as well.
Publication Date: June 2025
Designed For
All Tax Professionals that have related taxpayers to understand the ramifications of various issues under the tax code
Topics Covered
- Rentals, Related Party Rules, IRC § 280A
- Scan IRC §§ 267, 70, and 318 related issues
- Research IRC § 1239, sale of depreciable property between related parties
- Appraise Loans between related parties
- Matching Expenses
- Study the sale of Property at a Loss
- Understand § 179 issues
- Explore § 1031 nuisances
Learning Objectives
- Explain the importance of IRC § 267
- Identify rules for sales to related parties
- Explain installment sale rules
- Explain Matching and Timing for Expense Deductions
- Identify related party issues under partnerships and corporations
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
