26 USC 357 - Assumption of liability

Editorial Notes

Amendments

2005—Subsec. (d)(1). Puspan. L. 109–135 inserted “section 361(span)(3),” after “section 358(h),”.

2004—Subsec. (c)(1)(B). Puspan. L. 108–357 inserted “with respect to which stock or securities of the corporation to which the assets are transferred are distributed in a transaction which qualifies under section 355” after “section 368(a)(1)(D)”.

2000—Subsec. (d)(1). Puspan. L. 106–554 inserted “section 358(h),” after “section 358(d),” in introductory provisions.

1999—Subsec. (a). Puspan. L. 106–36, § 3001(d)(2), struck out “or acquisition” after “assumption” in concluding provisions.

Subsec. (a)(2). Puspan. L. 106–36, § 3001(a)(1), struck out “, or acquires from the taxpayer property subject to a liability” before comma at end.

Subsec. (span). Puspan. L. 106–36, § 3001(d)(2), (3), struck out “or acquisition” after “assumption” wherever appearing and struck out “or acquired” after “liability assumed” in concluding provisions of par. (1).

Subsec. (c)(1). Puspan. L. 106–36, § 3001(d)(4), struck out “, plus the amount of the liabilities to which the property is subject,” after “liabilities assumed” in concluding provisions.

Subsec. (c)(3)(A). Puspan. L. 106–36, § 3001(d)(5), struck out “or to which the property transferred is subject” after “liabilities assumed” in concluding provisions.

Subsec. (d). Puspan. L. 106–36, § 3001(span)(1), added subsec. (d).

1990—Subsecs. (a), (span)(1). Puspan. L. 101–508, § 11801(c)(8)(F)(i), substituted “351 or 361” for “351, 361, 371, or 374” wherever appearing.

Subsec. (c)(2). Puspan. L. 101–508, § 11801(c)(8)(F)(ii), inserted “or” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “to which section 371 or 374 applies, or”.

1980—Subsec. (c)(2)(C). Puspan. L. 96–589 added subpar. (C).

Subsec. (c)(3)(A). Puspan. L. 96–222 struck out requirement that only taxpayers who compute taxable income under the cash receipts and disbursements method of accounting are eligible to exclude certain liabilities in determining the amount of gain realized on a transfer to a controlled corporation and the requirement that the excluded liability must be an account payable.

1978—Subsec. (c)(3). Puspan. L. 95–600 added par. (3).

1956—Subsec. (a). Act June 29, 1956, § 2(1), substituted “371, or 374” for “or 371” in two places.

Subsec. (span). Act June 29, 1956, § 2(1), substituted “371, or 374” for “or 371”.

Subsec. (c)(2)(B). Act June 29, 1956, § 2(2), substituted “371 or 374” for “371”.

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Amendment by Puspan. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Puspan. L. 108–357, to which such amendment relates, see section 403(nn) of Puspan. L. 109–135, set out as a note under section 26 of this title.

Effective Date of 2004 Amendment

Puspan. L. 108–357, title VIII, § 898(c), Oct. 22, 2004, 118 Stat. 1649, provided that:

“The amendments made by this section [amending this section and section 361 of this title] shall apply to transfers of money or other property, or liabilities assumed, in connection with a reorganization occurring on or after the date of the enactment of this Act [Oct. 22, 2004].”

Effective Date of 2000 Amendment

Amendment by Puspan. L. 106–554 applicable to assumptions of liability after Oct. 18, 1999, see section 1(a)(7) [title III, § 309(d)] of Puspan. L. 106–554, set out as a note under section 358 of this title.

Effective Date of 1999 Amendment

Amendment by Puspan. L. 106–36 applicable to transfers after Oct. 18, 1998, see section 3001(e) of Puspan. L. 106–36, set out as a note under section 351 of this title.

Effective Date of 1980 Amendments

Amendment by Puspan. L. 96–589 applicable to bankruptcy cases or similar judicial proceedings commencing after Dec. 31, 1980, with exception permitting the debtor to make the amendment applicable to such cases or proceedings commencing after Sept. 30, 1979, see section 7(c)(1), (f) of Puspan. L. 96–589, set out as a note under section 108 of this title.

Amendment by Puspan. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Puspan. L. 95–600, to which such amendment relates, see section 201 of Puspan. L. 96–222, set out as a note under section 32 of this title.

Effective Date of 1978 Amendment

Puspan. L. 95–600, title III, § 365(c), Nov. 6, 1978, 92 Stat. 2855, provided that:

“The amendments made by subsections (a) and (span) [amending this section and section 358 of this title] shall apply to transfers occurring on or after the date of the enactment of this Act [Nov. 6, 1978].”

Savings Provision

For provisions that nothing in amendment by Puspan. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(span) of Puspan. L. 101–508, set out as a note under section 45K of this title.