- 39 -
We shall now consider whether Ms. Read’s February 5, 1986
transfer of MMP stock qualifies as one of the three situations
described in Q&A-9. The first situation in Q&A-9 describes a
transfer of property by the transferring spouse to a third party
on behalf of the nontransferring spouse that is required by a
divorce or separation instrument. We hold that Ms. Read's
transfer of her MMP stock to MMP was required by the divorce
judgment and fits within the first situation described in Q&A-9.
Although that transfer was required by the divorce judgment only
in the event that Mr. Read elected that Ms. Read transfer her MMP
stock to MMP, instead of to Mr. Read, once Mr. Read made that
election, which he did prior to Ms. Read’s transfer of her MMP
stock to MMP, that transfer was required by the divorce judgment.
We hold that Q&A-9 applies to Ms. Read’s February 5, 1986
transfer of MMP stock and that, pursuant to section 1041(a), no
gain shall be recognized by Ms. Read as a result of that trans-
fer.27 Mr. Read and MMP have indicated that if the Court were to
find, as we have, that section 1041 applies to Ms. Read’s trans-
fer of her MMP stock to MMP, the determinations in the respective
notices issued to Mr. Read and to MMP relating to that transfer
should be sustained. Consequently, those determinations have
27We have considered all of the contentions and arguments of
Mr. Read and MMP that are not discussed herein and find them to
be without merit and/or irrelevant to our resolution of whether
Q&A-9 and sec. 1041 apply to Ms. Read’s transfer of her MMP stock
to MMP.
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