Irc Section 357

These liabilities are frequently assumed by the transferee corporation.

Irc section 357. Title 26 section 1 357. 357 b requires that the taxpayer s improper motive be the principal purpose for the transfer of the liability. 351 exchange can be and often is subject to liabilities.

Property contributed to a corporation in a sec. First if the liabilities transferred to the corporation exceed the total adjusted basis of all properties transferred to the corporation then the excess of liabilities over the adjusted basis is. 357 a 2.

Cfr title 26 volume. 2 for the basis of stock or property received in an exchange to which this section applies see sections 358 and 362. Tax avoidance as a secondary objective is not sufficient to invoke irc sec.

Assumption of liability on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Normally the liability assumption is in accordance with sec. Law and analysis section 357 a provides that if as part of the consideration in an exchange to which 351 or 361 applies a liability of the taxpayer is assumed by another party to the exchange then such assumption shall not be treated as money or other property.

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. 357 a 1 the taxpayer receives property which would be permitted to be received under section 351 or 361 without the recognition of gain if it were the sole consideration and i r c. For special rule where another party to the exchange assumes a liability see section 357.

Application of irc sec.