Question

Section 1041 provides that transfers of property between spouses or former spouses incident to a divorce are nontaxable transactions. Therefore, no change in basis results.

a) True
b) False

Answer 1

Transfers of property between spouses or former spouses incident to a divorce are nontaxable transactions, resulting in no change in basis.

Step-by-step explanation:

The subject of this question is Law. The question is asking about the taxability of transfers of property between spouses or former spouses incident to a divorce. Section 1041 of the tax code states that such transfers are nontaxable transactions, meaning no change in basis results.

Therefore, the correct answer is True.