Yes, transfer incident to divorce is still an inclusion event, insane as that is
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What happens if I need to transfer a qualifying investment in a QOF to my wife following a divorce?
Will this action trigger an inclusion event?
Answers
This will be deemed an inclusion event. See IRS OZ FAQ #35 which speaks to this exact question.
Yes, transfer of a Qualified Opportunity Fund (QOF) interest to another person, including a transfer incident to divorce, is an inclusion event and will trigger early recognition of previously deferred gain.
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