Gay M. Pfister - Page 10

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          pursuant to an equitable division of the marital estate, a one-             
          half interest in the disposable military retired pay of her                 
          former husband.  The acquisition of this property right by                  
          petitioner may be a transfer of property subject to section 1041,           
          but, like her former husband, petitioner had no basis in this               
          property, and the distributions from the pension are includable             
          in petitioner’s gross income.                                               
               Therefore, the payments representing petitioner’s interest             
          in her former husband’s military retirement pay are gross income            
          to her.  See, e.g., Weir v. Commissioner, supra; Eatinger v.                
          Commissioner, T.C. Memo. 1990-310; Lowe v. Commissioner, T.C.               
          Memo. 1981-350.  Respondent’s position is sustained, and                    
          petitioner must include in her gross income the amounts received            
          in 1997 as a division of her former husband’s military retirement           
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             for respondent.                          

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