Discussion:Divorce settlment payments
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| Revision as of 22:56, 9 November 2007 Death&Taxes (Talk | contribs) (You've got it...) ← Previous diff |
Revision as of 00:18, 10 November 2007 Bengoshi (Talk | contribs) (Swonder, not sur) Next diff → |
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| {{ForumReplyPost|UserID=Death&Taxes|Date=9 November 2007|Text=You've got it....this has been so since 1983 or 1984, I believe. }} | {{ForumReplyPost|UserID=Death&Taxes|Date=9 November 2007|Text=You've got it....this has been so since 1983 or 1984, I believe. }} | ||
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| + | {{ForumReplyPost|UserID=Bengoshi|Date=10 November 2007|Text=Swonder, not sure what you mean about "basis of 100k or 550k." I believe (but not totally certain) that regardless of what ex-husband pays ex-wife for her share of the investment property, his basis will be the carryover basis of $100,000. See IRC 1041 and related Treasury Regs. }} | ||
Revision as of 00:18, 10 November 2007
Discussion Forum Index --> Advanced Tax Questions --> Divorce settlment payments
Discussion Forum Index --> Tax Questions --> Divorce settlment payments
| 9 November 2007 | |
| I have a client who is making divorce settlement payments to his ex for investment property which they jointly own. Does the payments to his ex increase his basis in the property? | |
Death&Taxes (talk|edits) said: | 9 November 2007 |
| No, see Sec. 1041-transfers between spouses incident to divorce are tax free. the question of any interest paid on the acquisition is another topic! | |
| 9 November 2007 | |
| So if the ex spouse had basis, her basis would then transfer to him, thus increasing his overall basis, right? | |
| 9 November 2007 | |
| For example:
If they had an investment property jointly while married costing 100k, then upon divorce he pays her 500k for her 1/2 interest then he would then have a basis of 100k or 550k (1/2 of 100k plus the 500k) | |
Death&Taxes (talk|edits) said: | 9 November 2007 |
| You've got it....this has been so since 1983 or 1984, I believe. | |
| 10 November 2007 | |
| Swonder, not sure what you mean about "basis of 100k or 550k." I believe (but not totally certain) that regardless of what ex-husband pays ex-wife for her share of the investment property, his basis will be the carryover basis of $100,000. See IRC 1041 and related Treasury Regs. | |
