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Posted: March 15th, 2023
In a divorce, the “general rule” under IRC Section 1041(a) says:
A: Assets can be transferred tax-free between spouses or former spouses.
B: Assets can never be transferred tax-free between spouses or former spouses.
C: Assets transferred between spouses or former spouses are always treated as taxable gifts under the federal gift tax act.
D: Asset transfers between spouses or former spouses are treated as taxable dispositions (for federal income tax purposes) in return for each party's release of his or her marital rights. Get Accounting homework help today
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