Bag Big
the divorced daughter got a big bag of money [a check ] from ex-spouse , it was taxed and came from his ira?
irs publication 504 talks about transfer of property . it does not mention when BOB gives CAROL a big bag of money ! where-how do you show this money ?under what category ??
Facts are lacking in your post.
Came from IRA and was taxed. . . .by whom? for what?
Generally NOT taxable. Depends on how it was characterized in divorce decree. If division of assets, no tax. It was theirs, now it's hers.
IF alimony, it's taxable, but that isn't usually a one-time transfer. IF it's a QDRO, division of retirement benefits, and it went into an IRA for her, and she isn't stupid enough to withdraw it, but lets it grow for her retirement, then there is NO taxable result-- until she starts withdrawing. Anytime $$ are withdrawn from IRA, a 1099R is issued for that year and sets up tax treatment.
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