Internal Revenue Code section 1041

§ 1041) addresses transfers of property between spouses or incident to divorce.

This rule also applies on a transfer of property from a trust for the benefit of a spouse or former spouse if the transfer is incident to the divorce.

For the purposes of this subsection, § 1041(c) states a transfer of property is incident to divorce if such a transfer either occurs within 1 year after the date on which the marriage ends, or is related to the end of the marriage.

Transfers in trust where liability exceeds basis per § 1041(e) are not addressed here.

Where the spouse-transferor is a nonresident alien, the Code states that the general rule in 1041(a) does not apply.