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Income Tax Planning
Chapter 10: Basis Rules, Depreciation, and Asset Categorization/BASIS AND SPOUSAL TRANSFERS: EXAMPLE
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Chapter 10: Basis Rules, Depreciation, and Asset Categorization

BASIS AND SPOUSAL TRANSFERS: EXAMPLE

01.Core Concepts

Vinny and Lisa, who jointly own a house in Maryland, are in the process of getting divorced. Vinny and Lisa each own 50% of the house, which has a basis of $100,000 and a FMV of $175,000. As part of their divorce settlement, Lisa will receive sole ownership of the house in Maryland. Lisa’s basis in the house will be $100,000 (her $50,000 basis plus $50,000 of carryover basis from Vinny).