CALIFORNIA FAMILY LAW
...Income Tax Matters
......Community Property: Assets
.........Transfers to Third Parties
2 Cards On This Topic:

Transfers of property made on behalf of a former spouse may qualify for 1041 treatment.

W must pay capital gain from property sold to satisfy property settlement as sale not a transfer "on behalf of" ex-H per Arnes; W not entitled to Int.Rev. Code §1041 (a)(2) refund.