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We recognize that although neither the parties nor the State
court can authoritatively construe Federal tax law, the agreement
as to Federal taxes may nevertheless throw strong light on what
was intended in the agreement and decree with respect to the
division of the marital property. This is particularly so since
section 1041(a) provides for nonrecognition of gain or loss on a
transfer of property incident to a divorce "to (or in trust for
the benefit of) a spouse," and section 1041(b)(2) provides that
the basis of the transferee "shall be the adjusted basis of the
transferor."3
It obviously appeared more convenient to cast the divorce
decree in terms of percentages of the proceeds to be received,
since a satisfactory resolution of the details of the sale under
the buy-sell agreement had not yet been negotiated. Although 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 the divorce.
(b) Transfer Treated as Gift; Transferee Has Transferor's
Basis.
* * * * * * *
(2) the basis of the transferee in the property shall
be the adjusted basis of the transferor.
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