Pub. 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 ...

Internal Revenue Code Section 357(c) Assumption of liability. (a) General rule. Except as provided in subsections (b) and (c), if--(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

Learn how Code Sec. 357 (c) applies when transferred liabilities exceed basis, impacting gain recognition and corporate stock basis adjustments. When transferring property to a corporation in exchange for stock, tax rules generally allow the transfer to …

I.R.C. § 357(c)(3)(B) Exception — Subparagraph (A) shall not apply to any liability to the extent that the incurrence of the liability resulted in the creation of, or an increase in, the basis of any property.

IRC Sec. 357 controls the tax treatment of liabilities assumed by the corporation, often causing recognition of gain where the transferor has not properly planned the transaction. Usually, however, the adverse consequences under IRC Sec. …

§ 357(c)(1) is applicable to a transaction that qualifies as a reorganization described in § 368(a)(1)(A) or (D) (that satisfies the requirements of § 354(b)(1)). DRAFTING INFORMATION

Apr 24, 2021 · Section 357(c) provides that a gain must be recognized in an amount equal to that excess. Taxpayers historically have tried to avoid recognition of gain under section 357(c) by executing a promissory note in favor of the corporation for the amount by which the liabilities assumed by the corporation exceed the adjusted basis of the assets ...

Mar 13, 2025 · Section 357(c) provides in Section 351 transactions and certain Section 355 transactions, gain is realized to the extent the liabilities assumed by the corporation exceed the total of the adjusted basis of the property transferred to the corporation.

357(c)(3)(B) Exception Subparagraph (A) shall not apply to any liability to the extent that the incurrence of the liability resulted in the creation of, or an increase in, the basis of any property.

Sep 22, 2015 · This article analyzes the section 357(c) character issue and determines which of the competing methods and underlying constructs is more appropriate in light of the relevant tax rules and principles, and in particular those relating to nonrecognition.