On August 1 of this year, Bart Barnes transferred property to his former spouse in settlement of marital rights, under a divorce instrument eﬀective July 26. fte property cost $10,000 and had a fair market value of $20,000 when transferred. Bart will recognize gain on the transfer.

Question

Quizplus · Accepted Answer

Transferring of property in settlement of marital rights does not trigger recognition of gain. Also, the basis of the property remains $10,000.

On August 1 of This Year, Bart Barnes Transferred Property