Posted on: 26th Oct, 2006 03:41 pm
I have been divorced 7 months and now my ex wants me to transfer my share in the home to him in return for a fixed amount, which I have agreed to but want to know if I will have to pay tax for this transfer, thanks(susan)
Hi Susan,
Any transfer of property after a divorce is tax free as per Internal Revenue Code section 1041, so you can transfer your share to your ex without having any tax liability.
Any transfer of property after a divorce is tax free as per Internal Revenue Code section 1041, so you can transfer your share to your ex without having any tax liability.
Hi,
Let me add one more thing, that the transfer of property should take place within 1 year of the divorce. And as you have said it’s been 7 months then it will not be a problem if you make the transfer.
You can also read more about related details from this page:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+26USC1041
Thanks
Colin
Let me add one more thing, that the transfer of property should take place within 1 year of the divorce. And as you have said it’s been 7 months then it will not be a problem if you make the transfer.
You can also read more about related details from this page:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+26USC1041
Thanks
Colin
Hi Susan,
If the property transferred from one spouse to another is incident to divorce, and if the transfer has been done in exchange of cash, then no gain or loss is recognized on the transfer of property. In that case, property acquired by the spouse is treated as gift for income tax purposes. But your transfer of property may not be subjected to gift tax if it meets certain exemptions. Refer http://www.irs.gov/publications/p504/ar02.html#d0e3554 for more details on this issue.
Thanks,
Caron.
If the property transferred from one spouse to another is incident to divorce, and if the transfer has been done in exchange of cash, then no gain or loss is recognized on the transfer of property. In that case, property acquired by the spouse is treated as gift for income tax purposes. But your transfer of property may not be subjected to gift tax if it meets certain exemptions. Refer http://www.irs.gov/publications/p504/ar02.html#d0e3554 for more details on this issue.
Thanks,
Caron.