26 U.S.C. § 752 — Treatment of certain liabilities
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 187 words · no verdicts yet
This section explains how certain changes in partnership and partner liabilities are treated. An increase is treated as a money contribution to the partnership, and a decrease is treated as a money distribution to the partner.
(a) Increase in partner’s liabilities. If a partner’s share of partnership* liabilities increases, or the partner’s individual liabilities increase because the partner* assumes partnership liabilities, the increase is treated as a money contribution by that partner to the partnership.
(b) Decrease in partner’s liabilities. If a partner’s share of partnership liabilities decreases, or the partner’s individual liabilities decrease because the partnership assumes those individual liabilities, the decrease is treated as a money distribution by the partnership to the partner.
(c) Liability to which property is subject. For this section, a liability secured by or otherwise attached to property is treated, up to the property’s fair market value, as a liability of the property’s owner.
(d) Sale or exchange of an interest. When a partnership interest is sold or exchanged, liabilities are treated the same way as liabilities connected with the sale or exchange of property not associated with partnerships.
Any increase in a partner’s share of the liabilities of a partnership*, or any increase in a partner’s individual liabilities by reason of the assumption by such partner* of partnership liabilities, shall be considered as a contribution of money by such partner to the partnership.
Any decrease in a partner’s share of the liabilities of a partnership, or any decrease in a partner’s individual liabilities by reason of the assumption by the partnership of such individual liabilities, shall be considered as a distribution of money to the partner by the partnership.
For purposes of this section, a liability to which property is subject shall, to the extent of the fair market value of such property, be considered as a liability of the owner of the property.
In the case of a sale or exchange of an interest in a partnership, liabilities shall be treated in the same manner as liabilities in connection with the sale or exchange of property not associated with partnerships.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 251.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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