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Section 10413 provides that for purposes of the income tax
provisions of the Code, property transferred by an individual to
or in trust for the benefit of a spouse or former spouse incident
to divorce is treated as acquired by the transferee by gift.
Sec. 1041(b)(1).
Section 1041(c)(1) provides that a transfer of property
between former spouses is incident to divorce when the transfer
occurs not more than 1 year after the date on which the marriage
ceases. Because petitioner acquired her life interest in the
3 SEC. 1041. TRANSFERS OF PROPERTY BETWEEN SPOUSES OR
INCIDENT TO DIVORCE.
(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 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.
(c) Incident To Divorce.--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, * * *
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Last modified: May 25, 2011