§2516 — Certain property settlements
19 citing cases
Statute Text — 26 U.S.C. §2516
Where a husband and wife enter into a written agreement relative to their marital and property rights and divorce occurs within the 3-year period beginning on the date 1 year before such agreement is entered into (whether or not such agreement is approved by the divorce decree), any transfers of property or interests in property made pursuant to such agreement—
to either spouse in settlement of his or her marital or property rights, or
to provide a reasonable allowance for the support of issue of the marriage during minority,
shall be deemed to be transfers made for a full and adequate consideration in money or money’s worth.
Treasury Regulations
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Treas. Reg. §25.2516-1Certain property settlements
(a) Section 2516 provides that transfers of property or interests in property made under the terms of a written agreement between spouses in settlement of their marital or property rights are deemed to be for an adequate and full consideration in money or money's worth and, therefore, exempt from the gift tax (whether or not such agreement is approved by a divorce decree), if the spouses obtain a final decree of divorce from each other within two years after entering into the agreement.
(b) See paragraph (b) of § 25.6019-3 for the circumstances under which information relating to property settlements must be disclosed on the transferor's gift tax return for the “calendar period” (as defined in § 25.2502-1(c)(1)) in which the agreement becomes effective.
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Treas. Reg. §25.2516-1(a)Section 2516 provides that transfers of property or interests in property made under the terms of a written agreement between spouses in settlement of their marital or property rights are deemed to be for an adequate and full consideration in money or money's worth and, therefore, exempt from the gift tax (whether or not such agreement is approved by a divorce decree), if the spouses obtain a final decree of divorce from each other within two years after entering into the agreement.
Section 2516 provides that transfers of property or interests in property made under the terms of a written agreement between spouses in settlement of their marital or property rights are deemed to be for an adequate and full consideration in money or money's worth and, therefore, exempt from the gift tax (whether or not such agreement is approved by a divorce decree), if the spouses obtain a final decree of divorce from each other within two years after entering into the agreement.
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Treas. Reg. §25.2516-1(b)See paragraph (b) of § 25.
See paragraph (b) of § 25.6019-3 for the circumstances under which information relating to property settlements must be disclosed on the transferor's gift tax return for the “calendar period” (as defined in § 25.2502-1(c)(1)) in which the agreement becomes effective.
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Treas. Reg. §25.2516-2Transfers in settlement of support obligations
Transfers to provide a reasonable allowance for the support of children (including legally adopted children) of a marriage during minority are not subject to the gift tax if made pursuant to an agreement which satisfies the requirements of section 2516.
19 Citing Cases
Section 2516 provides in part as follows: Where a husband and wife enter into a written agreementrelative to their marital and property rights and divorce occurs withinthe 3-yearperiod beginning on the date 1 year before such agreement is entered into (whether or not such agreement is approved by the divorce decree), an
section 2516, to mean crimes or criminal conduct. However, respondent is not using the contents of the intercepted communications in this proceeding as proof of tax evasion or some other tax offense. To the contrary, respondent is using the intercepted communications in these civil tax cases to satisfy the Commissioner's burden of proof with respec