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Two taxpayers became married with a pre-nuptial agreement some years ago. That agreement specified certain assets and interests in economic activities as separate. In one

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Two taxpayers became married with a pre-nuptial agreement some years ago. That agreement specified certain assets and interests in economic activities as separate. In one of these separate property interests, the property was heavily appreciated through the efforts, labor, and funds of both spouses. Should the taxpayers file separately, this appreciated property interest should be considered which of the following? O O O Entirely community property Community property with an interest generated for the other spouse commensurate to their labor, effort, and financial investment Separate property, as determined by the pre-nuptial agreement It would become community property in the terms of a divorce by way of ownership interest, but would generate no filing concerns for tax purposes Two taxpayers became married with a pre-nuptial agreement some years ago. That agreement specified certain assets and interests in economic activities as separate. In one of these separate property interests, the property was heavily appreciated through the efforts, labor, and funds of both spouses. Should the taxpayers file separately, this appreciated property interest should be considered which of the following? O O O Entirely community property Community property with an interest generated for the other spouse commensurate to their labor, effort, and financial investment Separate property, as determined by the pre-nuptial agreement It would become community property in the terms of a divorce by way of ownership interest, but would generate no filing concerns for tax purposes

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