Biz Vehicle

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  • S T
    Senior Member
    • Jun 2005
    • 5053
    #1

    Biz Vehicle

    It has been a while since I encountered this situation.

    Taxpayer had a biz vehicle that we were taking standard mileage rate biz deduction on. Taxpayer finalized a divorce, and the spouse was granted the ownership of the biz vehicle as part of the property settlement.

    How do I handle the disposition of the biz vehicle and do I have to report on form 4797?

    Thanks,

    Sandy
    Tags: None
    • veritas
      Senior Member
      • Dec 2005
      • 3290
      #2
      Generally

      no gain or loss is recoognized on property transferred due to a divorce. The wife will have the same adjusted basis in the transferred asset as her ex-husband.

      IRC Sec.1041
      Last edited by veritas; 03-15-2010, 10:44 PM.

        Comment

        • S T
          Senior Member
          • Jun 2005
          • 5053
          #3
          Yea

          Thanks Veritas,

          I think I knew that, just could not engage my brain!

          The ex spouse's problem now - and we all know that won't be tracked

          Off the books

          Sandy

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