Are Step-Parents Considered Related Parties for 1031 Exchange Purposes?

There are many rules and regulations that govern 1031 exchanges. One such rule puts heavy restrictions on 1031 exchanges between related parties. In this article, we are going to discuss whether step-parents are considered related parties for 1031 exchange purposes.

Step-Parents & 1031 Exchanges

According to Rev. Rul. 71-50 and DeBoer v. Commissioner, step-parents and step-children are not considered family members for the purposes of §267(c)(2). The case of Tilles v. Commissioner also establishes that nieces, nephews, and in-laws are not considered family members either. Therefore, based on these authorities, step-parents should not be categorized as related parties for 1031 purposes.

Find a Qualified Intermediary to Partner with on Your Next 1031 Exchange

To ensure the success of your 1031 exchange, it’s important to find a qualified intermediary to partner with throughout your transaction. The qualified intermediaries at CPEC1031, LLC have been helping taxpayers just like you through the details of 1031 exchanges. Our team is ready and waiting to guide you through your unique like-kind exchange. Contact us today to learn more about our 1031 exchange services and see how we can help you defer capital gains taxes when selling investment property in a like-kind exchange transaction.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

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