Property Settlements Made Incident to a Divorce Have No Immediate

question 120

True/False

Property settlements made incident to a divorce have no immediate tax consequences; that is,the transfer from one spouse to another is not taxable.

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Definitions:

Limited Risk

Exposure to a relatively small possibility of loss or less severe consequences in an investment or business activity.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Supplies

Items used in the operation of a business or part of inventory not yet sold.

Equipment

Tangible property owned by a business used in its operations over an extended period.