North Carolina § 41-59 - Income derived from entireties property.

§ 41-59. Income derived from entireties property.

Income derived from property held by spouses as tenants by the entirety becomes personal property held by the spouses as tenants in common in equal shares. For income tax purposes, each spouse is considered to have received one-half the income or loss from property held by the spouses as tenants by the entirety. History (1981 (Reg. Sess., 1982), c. 1245, s. 1; 1983, c. 449, ss. 1, 2; 2020-50, s. 1(a)-(c).) Cross References. - As to rules for construction, see G.S. 12-3. Editor's Note. - Subsection (b) of this section is former G.S. 39-13.6(c) , as recodified by Session Laws 2020-50, s. 1(b), effective June 30, 2020. The historical citation and annotations from the former section have been added to this section as recodified. Effect of Amendments. - Session Laws 2020-50, s. 1(c), effective June 30, 2020, added subsection (a); and substituted "held by the spouses" for "owned by the couples" in subsection (b). Legal Periodicals. - For article analyzing North Carolina's tenancy by the entirety reform legislation of 1982, see 5 Campbell L. Rev. 1 (1982). For article discussing the doctrine of color of title in North Carolina, see 13 N.C. Cent. L.J. 123 (1982). For survey of 1982 law relating to family law, see 61 N.C.L. Rev. 1155 (1983). For comment discussing the status of the presumption of purchase money resulting trust for wives in light of Mims v. Mims, 305 N.C. 41 , 286 S.E.2d 779 (1982), see 61 N.C.L. Rev. 576 (1983). For note, "Branch Banking & Trust Co. v. Wright - Creditors' Rights to Entireties Property Awarded to Nondebtor Spouse Upon Divorce," see 64 N.C.L. Rev. 1471 (1986). For note on the retroactive application of G.S. 39-13.6 under a vested rights analysis, see 65 N.C.L. Rev. 1195 (1987). For note, "McLean v. McLean: North Carolina Adopts the Gift Presumption in Equitable Distribution," see 68 N.C. L. Rev. 1269 (1990). For article, "A Spouse's Right to Control Assets During Marriage: Is North Carolina Living in the Middle Ages?", see 18 Campbell L. Rev. 203 (1996).