Divorce is the answer to saving on inheritance and gift taxes.” This is a recent joke circulating among wealthy individuals. When passing assets to a spouse with whom one has spent a lifetime, a ...

Legally, the spouse receiving the gift may become the owner of the property, but for tax purposes, LTCG is still treated as income of the original owner.

The bill provides that the transfer of property to a spouse incident to a divorce will be treated, for income tax purposes, in the same manner as a gift. Gain (including recapture income) or loss will ...