Section 1041

Internal revenue code 1041.

Section 1041. 1041 a general rule no gain or loss shall be recognized on a transfer of property from an individual to or in trust for the benefit of. Income tax return for estates and trusts including recent updates related forms and instructions on how to file. Transfers of property between spouses or incident to divorce on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system.

Section 1041 of the internal revenue code 26 u s c. Under irc section 1041 the transfer of property between spouses or former spouses if incident to divorce is generally not treated as a taxable exchange. Section 1041 applies to any transfer of property between spouses regardless of whether the transfer is a gift or is a sale or exchange between spouses acting at arm s length including a transfer in exchange for the relinquishment of property or marital rights or an exchange otherwise governed by another nonrecognition provision of the code.

Confusing tax results can occur where the non recognition rule of 1041 applies even where the marital parties are acting at arms length and full consideration is paid for the property. Information about form 1041 u s. 1041 addresses transfers of property between spouses or incident to divorce.

For more detailed codes research information including annotations and citations please visit westlaw. Form 1041 a pdf form 1041 a is used by trusts claiming a contributions deduction under section 642 c or split interest trusts described in section 4947 a 2 to report information required by section 6034. Transfers of property between spouses or incident to divorcetext contains those laws in effect on september 28 2020 from title 26 internal revenue codesubtitle a income taxeschapter 1 normal taxes and surtaxessubchapter o gain or loss on disposition of propertypart iii common nontaxable exchanges.

No deductible loss or taxable gain. Transfers of property between spouses or incident to divorce i r c. A general ruleno gain or loss shall be recognized on a transfer of property from an individual to or in trust for the benefit of 1.