26 U.S.C. § 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
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.
# (c) Incident to divorce
For purposes of subsection (a)(2), a transfer of property is incident to the divorce if such transfer— (1) occurs within 1 year after the date on which the marriage ceases, or (2) is related to the cessation of the marriage.
# (d) Special rule where spouse is nonresident alien
Subsection (a) shall not apply if the spouse (or former spouse) of the individual making the transfer is a nonresident alien.
# (e) Transfers in trust where liability exceeds basis
Subsection (a) shall not apply to the transfer of property in trust to the extent that— (1) the sum of the amount of the liabilities assumed, plus the amount of the liabilities to which the property is subject, exceeds (2) the total of the adjusted basis of the property transferred. Proper adjustment shall be made under subsection (b) in the basis of the transferee in such property to take into account gain recognized by reason of the preceding sentence.
Source: view the official text
Cited by 35
- 26 CFR § 1.1041-1T — Treatment of transfer of property between spouses or incident to divorce (temporary).
- 26 CFR § 1.1041-2 — Redemptions of stock.
- 26 CFR § 1.108(i)-2 — Application of section 108(i) to partnerships and S corporations.
- 26 CFR § 1.108-7 — Reduction of attributes.
- 26 CFR § 1.1202-2 — Qualified small business stock; effect of redemptions.
- 26 CFR § 1.121-4 — Special rules.
- 26 CFR § 1.1254-0 — Table of contents for section 1254 recapture rules.
- 26 CFR § 1.1254-2 — Exceptions and limitations.
- 26 CFR § 1.1254-3 — Section 1254 costs immediately after certain acquisitions.
- 26 CFR § 1.1254-4 — Special rules for S corporations and their shareholders.
- 26 CFR § 1.1254-5 — Special rules for partnerships and their partners.
- 26 CFR § 1.1274-1 — Debt instruments to which section 1274 applies.
Show 23 more
- 26 CFR § 1.1366-0 — Table of contents.
- 26 CFR § 1.1366-2 — Limitations on deduction of passthrough items of an S corporation to its shareholders.
- 26 CFR § 1.1377-1 — Pro rata share.
- 26 CFR § 1.1504-4 — Treatment of warrants, options, convertible obligations, and other similar interests.
- 26 CFR § 1.215-1T — Alimony, etc., payments (temporary).
- 26 CFR § 1.421-1 — Meaning and use of certain terms.
- 26 CFR § 1.424-1 — Definitions and special rules applicable to statutory options.
- 26 CFR § 1.483-1 — Interest on certain deferred payments.
- 26 CFR § 1.6045-4 — Information reporting on real estate transactions.
- 26 CFR § 1.71-1T — Alimony and separate maintenance payments (temporary).
- 26 CFR § 1.761-3 — Certain option holders treated as partners.
- 26 CFR § 301.6404-3 — Abatement of penalty or addition to tax attributable to erroneous written advice of the Internal Revenue Service.
- 26 U.S.C. § 1015 — Basis of property acquired by gifts and transfers in trust
- 26 U.S.C. § 121 — Exclusion of gain from sale of principal residence
- 26 U.S.C. § 1366 — Pass-thru of items to shareholders
- 26 U.S.C. § 143 — Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond
- 26 U.S.C. § 267 — Losses, expenses, and interest with respect to transactions between related taxpayers
- 26 U.S.C. § 36 — First-time homebuyer credit
- 26 U.S.C. § 382 — Limitation on net operating loss carryforwards and certain built-in losses following ownership change
- 26 U.S.C. § 424 — Definitions and special rules
- 26 U.S.C. § 453B — Gain or loss on disposition of installment obligations
- 26 U.S.C. § 50 — Other special rules
- 26 U.S.C. § 72 — Annuities; certain proceeds of endowment and life insurance contracts
Nearby sections (25 sections)
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- 1024 · Renumbered § 1023
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- 1039 · Repealed. Pub. L. 101–508, title XI, § 11801(a)(33), Nov. 5,…
- 1040 · Transfer of certain farm, etc., real property
- 1041 · Transfers of property between spouses or incident to divorce
- 1042 · Sales of stock to employee stock ownership plans or certain…
- 1043 · Sale of property to comply with conflict-of-interest requirements
- 1044 · Repealed. Pub. L. 115–97, title I, § 13313(a), Dec. 22, 2017,…
- 1045 · Rollover of gain from qualified small business stock to another…
- 1051 · Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(78), Dec.…
- 1052 · Basis established by the Revenue Act of 1932 or 1934 or by the…
- 1053 · Property acquired before March 1, 1913
- 1054 · Certain stock of Federal National Mortgage Association
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- 1056 · Repealed. Pub. L. 108–357, title VIII, § 886(b)(1)(A), Oct. 22,…
- 1057 · Repealed. Pub. L. 105–34, title XI, § 1131(c)(2), Aug. 5, 1997,…
- 1058 · Transfers of securities under certain agreements