In PLR 201927003, the IRS ruled that two spouses recognized no gain or loss on the sale of limited partnership interests to two trusts. The spouses had created two separate grantor trusts where they were the owners of the assets and all income was taxed to the grantors. Further, the basis of property acquired from one of the spouses by the other spouse’s trust would be the same as the adjusted basis in the property in the hands of spouse.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..
