Sec. 8. As used in this chapter, “related member” means a person that, with respect to the taxpayer during all or any portion of the taxable year, is any one (1) of the following:

(1) An individual stockholder, or a member of the stockholder’s family enumerated in Section 318 of the Internal Revenue Code, if the stockholder and the member of the stockholder’s family own directly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer’s outstanding stock.

Terms Used In Indiana Code 6-3.1-13-8

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • corporation: means the Indiana economic development corporation established by IC 5-28-3-1. See Indiana Code 6-3.1-13-1.5
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • related member: means a person that, with respect to the taxpayer during all or any portion of the taxable year, is any one (1) of the following:

    Indiana Code 6-3.1-13-8

  • taxpayer: means a person, corporation, partnership, or other entity that has any state tax liability or that submits incremental income tax withholdings under IC 6-3-4-8. See Indiana Code 6-3.1-13-10
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) A stockholder, or a stockholder’s partnership, estate, trust, or corporation, if the stockholder and the stockholder’s partnership, estate, trust, or corporation owns directly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer’s outstanding stock.

(3) A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the value of the corporation’s outstanding stock.

(4) A component member (as defined in Section 1563(b) of the Internal Revenue Code).

(5) A person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code except, for purposes of determining whether a person is a related member under this subdivision, twenty percent (20%) shall be substituted for five percent (5%) wherever five percent (5%) appears in Section 1563(e) of the Internal Revenue Code.

As added by P.L.41-1994, SEC.1.

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