I.R.C. § 752(a) Increase In Partner's Liabilities
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.
I.R.C. § 752(b) Decrease In Partner's Liabilities
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.
I.R.C. § 752(c) Liability To Which Property Is Subject
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.
I.R.C. § 752(d) Sale Or Exchange Of An Interest
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.
(Aug. 16, 1954, ch. 736, 68A Stat. 251.)
OVERRULING OF RAPHAN CASE
Pub. L. 98-369, div. A, title I, 79, July 18, 1984, 98 Stat. 597, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) General Rule.--Section 752 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (and the regulations prescribed thereunder) shall be applied without regard to the
result reached in the case of Raphan vs the United States, 3 Cl. Ct. 457
“(b) Regulations.--In amending the regulations prescribed under section 752 of such
Code to reflect subsection (a), the Secretary of the Treasury or his delegate shall
prescribe regulations relating to liabilities, including the treatment of guarantees,
assumptions, indemnity agreements, and similar arrangements.”