- 34 -
equity divided equally upon that sale. The November 29, 1988,
modification to the divorce judgment provided that Florence would
sell the Burlington property and that Mr. Bowers would receive 25
percent of the net proceeds and Florence 75 percent. Thus, as of
November 29, 1988, Mr. Bowers had no more than a 25-percent
interest in the Burlington property. Bachyrycz v. Gateway Bank,
30 Conn. App. 52, 618 A.2d 1371 (1993).
Petitioners chose to have Florence transfer title to the
Trust. They elected to style the Trust as one for the benefit of
Deborah, not for Mr. Bowers or for themselves jointly. By doing
so, they caused Mr. Bowers' equitable interest to be extinguished
upon the transfer of title to the Trust. In essence, Florence
transferred both her 75-percent interest and Mr. Bowers' 25-
percent interest to the Trust for the benefit of Deborah. The
transfer to the Trust can be viewed as part gift and part sale.
Mr. Bowers received no cash, but realized (was relieved of) 25
percent of the liabilities to which the property was subject at
the time of transfer to the Trust.
Where a transfer of property is in part a sale and in
part a gift, the unadjusted basis of the property in
the hands of the transferee is the sum of--
(1) Whichever of the following is the greater:
(i) The amount paid by the transferee for the
property, or
(ii) The transferor's adjusted basis for the
property at the time of the transfer, and
(2) The amount of increase, if any, in basis
authorized by section 1015(d) for gift tax paid * * *.
Sec. 1.1015-4(a), Income Tax Regs.
Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 NextLast modified: May 25, 2011