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spouse in the property shall be the adjusted basis of the
transferor in the portion transferred.
Petitioner husband contends that because the King of Prussia
property is held in a tenancy by the entirety, for purpose of
section 1034, he is treated as an owner of the entire interest in
the King of Prussia property. Accordingly, petitioner husband
asserts that he is entitled to include all the amounts expended
for construction and reconstruction of the King of Prussia
property.
In Pennsylvania, a tenancy by the entirety is an estate per
tout et non per my (by the whole and not by the half). Sterrett
v. Sterrett, 401 Pa. 583, 585, 166 A.2d 1, 2 (1960). The
distinctive characteristic of a tenancy by the entirety is that
it is deemed to be owned by a single entity, the marital
community. While a tenancy by the entirety resembles a common
5(...continued)
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 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.
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