I am keen to understand that does family sharing of purchase would work with in-app purchases too as it works with app and music on iOS 8.
2 Answers
As of iOS 14 and macOS Big Sur it will be possible for developers to also offer family sharing for in-app-purchases, as mentioned in the macOS Big Sur press release:
Developers can now also offer Family Sharing for their in-app purchases and subscriptions
These operating services will be available as release versions in the fall of 2020.
Update 04/12/2020: Family sharing of non-consumable in-app-purchases can now finally be enabled in App Store Connect:
Update 23/09/2020: With iOS 14 having been released a week ago, Apple is now promoting the availability of family sharing for in-app-purchases in the App Store. However, the corresponding switch in App Store Connect is not available as of today. I couldn't find it and there are multiple reports on the web about the missing availability of the switch.

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1Now iOS 14 was released. Do you know or does anyone know how to enable in-app purchase family sharing? A WWDC video says there will be a checkbox to enable it in app store connect's in-app manage page. But there isn't. My app's in-app purchase type is non-consumable. – user_ Sep 22 '20 at 20:52
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1@user_ Short answer: You can't enable it, because Apple didn't enable the switch yet.So the only thing we can do is wait... – fredpi Sep 23 '20 at 18:45
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Still no checkbox available in ASC. The text in AppStore says "In-app purchases may be sharable with your family" and we also have many messages from users asking how to use this feature. – silvansky Nov 13 '20 at 15:48
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1@user_ The switch is now finally available in App Store Connect. See the updated answer. – fredpi Dec 04 '20 at 00:24
No, IAPs are not supported. Any app purchased by a member of the family sharing group is accessible to all but in-app purchases must be made by each individual member, i.e. they are non-sharable.
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can we give custom feature in our application for in app purchase with family sharing managed by our side? Here you can find more details on my linked question what I'm looking for: http://stackoverflow.com/questions/35890962/ios-in-app-purchase-managing-multiple-auto-renewable-subscriptions-with-upgrade If you can share your views that will be great help :) – RayofHope Mar 09 '16 at 12:16
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Now IAP is sharable, but I don't know how. https://www.apple.com/ios/ios-14/features/ says: [Share third-party app subscriptions] Developers can support Family Sharing for in-app purchases and subscriptions so everyone in your family can have access with a single App Store purchase. – user_ Sep 22 '20 at 21:01