Property settlement from divorce settlement - taxable?
Answer:
Generally, property settlements "incident to a divorce" are considered tax-free exchanges and are not reportable or taxable.
Generally, a transfer is "incident to a divorce" if the transfer occurred within one year after the marriage ceases, or any transfer persuant to a divorce or separation agreement occurring within 6 years of the end of a marriage.
Generally, a transfer is "incident to a divorce" if the transfer occurred within one year after the marriage ceases, or any transfer persuant to a divorce or separation agreement occurring within 6 years of the end of a marriage.
