When a couple divorce, what is the tax treatment of any property transferred to one of them?

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When a couple divorce, what is the tax treatment of any property transferred to one of them?
a. taxable on transfer; FMV - basis = taxable income to party assigning the property

b. it is not taxable at transfer date; basis transfers to sole owner

c. taxable to both parties

d. taxable on transfer; FMV - basis = taxable income to party receiving the property

Related Book For answer-question

Concepts in Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Posted Date: Mar 17, 2022 12:57 AM

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When a couple divorce, what is the tax treatment of any property transferred to one of them?

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Most Property Transfers in Divorce are TaxFree When one ... View the full answer

Concepts in Federal Taxation

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