Conflicting Definitions of "Liabilities" Threatens Some Tax-free Reorganizations

Date

1974

Authors

Phelan, Marilyn E.

Journal Title

Journal ISSN

Volume Title

Publisher

Journal of Taxation

Abstract

The assumption of "liabilities" in reorganizations and Section 351 transfers can constitute boot and create taxable gain in an otherwise tax-free transaction. But what are "liabilities" for this purpose? Recent cases have raised conflicting theories about their nature (particularly for cash basis taxpayers), which can adversely affect a wide range of corporate transfers. Professor Phelan analyzes the impact of these late developments in the reorganization area.

Description

Keywords

Tax liabilities, Business reorganizations, Section 351, Tax law

Citation

40 Journal of Taxation 345