26 U.S.C. § 1041 — Transfers of property between spouses or incident to divorce

submitted 42 years ago by Pub. L. 98-369 to r/title-26-INTERNAL-REVENUE-CODE · 261 words · no verdicts yet

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A translation hasn’t been published for this section yet. The official text below is complete and authoritative.

the actual law source: uscode.house.gov ↗public domain

(a) General rule

No gain or loss shall be recognized on a transfer of property from an individual to (or in trust for the benefit of)—

(1)

a spouse, or

(2)

a former spouse, but only if the transfer is incident to the divorce.

(b) Transfer treated as gift; transferee has transferor’s basis

In the case of any transfer of property described in subsection (a)—

(1)

for purposes of this subtitle, the property shall be treated as acquired by the transferee by gift, and

(2)

the basis of the transferee in the property shall be the adjusted basis of the transferor.

For purposes of subsection (a)(2), a transfer of property is incident to the divorce if such transfer—

(1)

occurs within 1 year after the date on which the marriage ceases, or

(2)

is related to the cessation of the marriage.

(d) Special rule where spouse is nonresident alien

Subsection (a) shall not apply if the spouse (or former spouse) of the individual making the transfer is a nonresident alien.

(e) Transfers in trust where liability exceeds basis

Subsection (a) shall not apply to the transfer of property in trust to the extent that—

(1)

the sum of the amount of the liabilities assumed, plus the amount of the liabilities to which the property is subject, exceeds

(2)

the total of the adjusted basis of the property transferred.

Proper adjustment shall be made under subsection (b) in the basis of the transferee in such property to take into account gain recognized by reason of the preceding sentence.

Source credit: (Added Pub. L. 98–369, div. A, title IV, § 421(a), July 18, 1984, 98 Stat. 793; amended Pub. L. 99–514, title XVIII, § 1842(b), Oct. 22, 1986, 100 Stat. 2853; Pub. L. 100–647, title I, § 1018(l)(3), Nov. 10, 1988, 102 Stat. 3584.)

history & why it existsrecord from the source credit

1984Enacted · Pub. L. 98-369 · 98 Stat. 793
1986Amended · Pub. L. 99-514 · 100 Stat. 2853
1988Amended · Pub. L. 100-647 · 102 Stat. 3584

A history note hasn’t been published yet. The record shows enactment by Pub. L. 98-369 on 1984-07-18.

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