### Question
How does Income Taxes define related party?


### Answer
Under *26 U.S.C. § 250*, **related party** is defined as:

> any member of an affiliated group as defined in section 1504(a), determined—


(i) by substituting "more than 50 percent" for "at least 80 percent" each place it appears, and


(ii) without regard to paragraphs (2) and (3) of section 1504(b)

#### Citation:
  - *26 U.S.C. § 250*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VIII-SPECIAL DEDUCTIONS FOR CORPORATIONS**

