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Incident to a divorce?

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    #1

    Incident to a divorce?

    a couple got divorced. They had an owner occupied two family house. As part of the divorce the husband got the house and gave the wife cash. I assume, that even though a rental is involved, it is incident to a divorce and for tax purposes there is no sale just a transfer, correct?
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    #2
    That is correct. That is one way around the recapture of depreciation rule. Get a divorce and opt for the cash.

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      #3
      That's correct. Carryover basis applies. Bees is right, that is an indirect advantage of divorce if you can accept the other costs.

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