Federal Income Tax Treatment of Divisions of Property
44 Pages Posted: 26 Feb 2012
Date Written: February 25, 1970
This article addresses the application of federal income tax principles to divisions of property between co-owners, such as joint tenants or fractional share beneficiaries of a decedent’s estate. The article demonstrates that, although the general rule is that such a division is not a taxable event, there are numerous exceptions. The article develops specific rules for dealing with each type of co-ownership and recommends legislation that could improve the clarity and application of those rules.
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