§ 1.752-0. Table of contents.

§ 1.752-1 Treatment of partnership liabilities.

(a) Definitions.

(1) Recourse liability defined.

(2) Nonrecourse liability defined.

(3) Related person.

(4) Liability defined.

(i) In general.

(ii) Obligation.

(iii) Other liabilities.

(iv) Effective date.

(b) Increase in partner's share of liabilities.

(c) Decrease in partner's share of liabilities.

(d) Assumption of liability.

(1) In general.

(2) Applicability date.

(e) Property subject to a liability.

(f) Netting of increases and decreases in liabilities resulting from same transaction.

(g) Example.

(h) Sale or exchange of partnership interest.

(i) Bifurcation of partnership liabilities.

§ 1.752-2 Partner's share of recourse liabilities.

(a) Partner's share of recourse liabilities.

(1) In general.

(2) Overlapping economic risk of loss.

(3) Direct economic risk of loss.

(b) Obligation to make a payment.

(1) In general.

(2) Treatment upon deemed disposition.

(3) Obligations recognized.

(i) In general.

(ii) Special rules for bottom dollar payment obligations.

(A) In general.

(B) Exception.

(C) Definition of bottom dollar payment obligation.

(1) In general.

(2) Exceptions.

(3) Benefited party defined.

(D) Disclosure of bottom dollar payment obligations.

(iii) Special rule for indemnities and reimbursement agreements.

(4) Contingent obligations.

(5) Reimbursement rights.

(6) Deemed satisfaction or obligation.

(c) Partner or related person as lender.

(1) In general.

(2) Wrapped debt.

(d) De minimis exceptions.

(1) Partner as lender.

(2) Partner as guarantor.

(e) Special rule for nonrecourse liability with interest guaranteed by a partner.

(1) In general.

(2) Computation of present value.

(3) Safe harbor.

(4) De minimis exception.

(f) Examples.

(g) Time-value-of-money considerations.

(1) In general.

(2) Valuation of an obligation.

(3) Satisfaction of obligation with partner's promissory note.

(4) Example.

(h) Partner providing property as security for partnership liability.

(1) Direct pledge.

(2) Indirect pledge.

(3) Valuation.

(4) Partner's promissory note.

(i) Treatment of recourse liabilities in tiered partnerships.

(1) In general.

(2) Coordination with overlapping economic risk of loss.

(3) Example.

(j) Anti-abuse rules.

(1) In general.

(2) Arrangements tantamount to a guarantee.

(i) In general.

(ii) Economic risk of loss.

(3) Plan to circumvent or avoid an obligation.

(i) General rule.

(ii) Factors indicating plan to circumvent or avoid an obligation.

(4) Example.

(k) No reasonable expectation of payment.

(1) In general.

(2) Examples.

(3) Plan to circumvent or avoid the regulations.

(4) Examples.

(l) Applicability dates.

§ 1.752-3 Partner's share of nonrecourse liabilities.

(a) In general.

(b) Examples.

§ 1.752-4 Special rules.

(a) Tiered partnerships.

(b) Related person definition.

(1) In general.

(2) Related partner exception.

(3) Person related to more than one partner.

(4) Special rule where entity structured to avoid related person status.

(i) In general.

(ii) Ownership interest.

(5) Examples.

(c) Limitation.

(d) Time of determination.

(e) Ordering rule.

(f) Example.

§ 1.752-5 Effective dates and transition rules.

(a) In general.

(b) Election.

(1) In general.

(2) Time and manner of election.

(c) Effect of section 708(b)(1)(B) termination on determining date liabilities are incurred or assumed.

§ 1.752-6 Partnership assumption of partner's section 358(h)(3) liability after October 18, 1999, and before June 24, 2003.

(a) In general.

(b) Exceptions.

(1) In general.

(2) Transactions described in Notice 2000-44.

(c) Example.

(d) Effective date.

(1) In general.

(2) Election to apply § 1.752-7.

§ 1.752-7 Partnership assumption of partner's § 1.752-7 liability on or after June 24, 2003.

(a) Purpose and structure.

(b) Definitions.

(1) Assumption.

(2) Adjusted value.

(3) § 1.752-7 liability.

(i) In general.

(ii) Amount and share of § 1.752-7 liability.

(iii) Example.

(4) § 1.752-7 liability transfer.

(i) In general.

(ii) Terminations under section 708(b)(1)(B).

(5) § 1.752-7 liability partner.

(i) In general.

(ii) Tiered partnerships.

(A) Assumption by a lower-tier partnership.

(B) Distribution of partnership interest.

(6) Remaining built-in loss associated with a § 1.752-7 liability.

(i) In general.

(ii) Partial dispositions and assumptions.

(7) § 1.752-7 liability reduction.

(i) In general.

(ii) Partial dispositions and assumptions.

(8) Satisfaction of § 1.752-7 liability.

(9) Testing date.

(10) Trade or business.

(i) In general.

(ii) Examples.

(c) Application of section 704(b) and (c) to assumed § 1.752-7 liabilities.

(1) In general.

(i) Section 704(c).

(ii) Section 704(b).

(2) Example.

(d) Special rules for transfers of partnership interests, distributions of partnership assets, and assumptions of the § 1.752-7 liability after a § 1.752-7 liability transfer.

(1) In general.

(2) Exceptions.

(i) In general.

(ii) Examples.

(e) Transfer of § 1.752-7 liability partner's partnership interest.

(1) In general.

(2) Examples.

(3) Exception for nonrecognition transactions.

(i) In general.

(ii) Examples.

(f) Distribution in liquidation of § 1.752-7 liability partner's partnership interest.

(1) In general.

(2) Example.

(g) Assumption of § 1.752-7 liability by a partner other than § 1.752-7 liability partner.

(1) In general.

(2) Consequences to § 1.752-7 liability partner.

(3) Consequences to partnership.

(4) Consequences to assuming partner.

(5) Example.

(h) Notification by the partnership (or successor) of the satisfaction of the § 1.752-7 liability.

(i) Special rule for amounts that are capitalized prior to the occurrence of an event described in paragraphs (e), (f), or (g).

(1) In general.

(2) Example.

(j) Tiered partnerships.

(1) Look-through treatment.

(2) Trade or business exception.

(3) Partnership as a § 1.752-7 liability partner.

(4) Transfer of § 1.752-7 liability by partnership to another partnership or corporation after a transaction described in paragraphs (e),(f), or (g).

(i) In general.

(ii) Subsequent transfers.

(5) Example.

(k) Effective dates.

(1) In general.

(2) Election to apply this section to assumptions of liabilities occurring after October 18, 1999 and before June 24, 2003.

(i) In general.

(ii) Manner of making election.

(iii) Filing of amended returns.

(iv) Time for making election.