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16) . Which of the following is not a related party for constructive ownership purposes under $ 267? a. The taxpayers aunt.
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16) Answer is a) the taxpayer’s aunt

S 267(b) defines related party to include members of family including brother, sisters, half-brother, half-sister, spouse, ancestors (parents, grandparents) and linear descendants. It does not include nieces, aunts, uncles, in laws and step-brother. Hence brother and grandmother are qualified as relative. A corporation owned more than 50% by the taxpayer is a relative as per above section. So answer is a) since aunt of taxpayer is not a relative as defined.

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