# 26 U.S.C. § 752: Treatment of certain liabilities Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 752(a)(1). ## § 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. ## § 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. ## § 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. ## § 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. ## Regulations - [Treas. Reg. § 1.752-0](/26/reg/1.752-0.md): Table of contents. (interprets § 752) - [Treas. Reg. § 1.752-1](/26/reg/1.752-1.md): Treatment of partnership liabilities. (interprets § 752) - [Treas. Reg. § 1.752-2](/26/reg/1.752-2.md): Partner's share of recourse liabilities. (interprets § 752) - [Treas. Reg. § 1.752-2T](/26/reg/1.752-2T.md): Partner's share of recourse liabilities (temporary). (interprets § 752) - [Treas. Reg. § 1.752-3](/26/reg/1.752-3.md): Partner's share of nonrecourse liabilities. (interprets § 752) - [Treas. Reg. § 1.752-4](/26/reg/1.752-4.md): Special rules. (interprets § 752) - [Treas. Reg. § 1.752-5](/26/reg/1.752-5.md): Applicability dates and transition rules. (interprets § 752) - [Treas. Reg. § 1.752-6](/26/reg/1.752-6.md): Partnership assumption of partner's section 358(h)(3) liability after October 18, 1999, and before June 24, 2003. (interprets § 752) - [Treas. Reg. § 1.752-7](/26/reg/1.752-7.md): Partnership assumption of partner's § 1.752-7 liability on or after June 24, 2003. (interprets § 752) ## Forms named in the regulations - [Form 8275](https://www.irs.gov/pub/irs-pdf/f8275.pdf) ## Final rules - [89 FR 95108](https://www.federalregister.gov/documents/2024/12/02/2024-27840/recourse-partnership-liabilities-and-related-party-rules) (2024): Recourse Partnership Liabilities and Related Party Rules - [84 FR 54014](https://www.federalregister.gov/documents/2019/10/09/2019-22031/liabilities-recognized-as-recourse-partnership-liabilities-under-section-752) (2019): Liabilities Recognized as Recourse Partnership Liabilities Under Section 752 - [81 FR 72858](https://www.federalregister.gov/documents/2016/10/21/2016-25105/treatment-of-certain-interests-in-corporations-as-stock-or-indebtedness) (2016): Treatment of Certain Interests in Corporations as Stock or Indebtedness - [81 FR 69282](https://www.federalregister.gov/documents/2016/10/05/2016-23388/liabilities-recognized-as-recourse-partnership-liabilities-under-section-752) (2016): Liabilities Recognized as Recourse Partnership Liabilities Under Section 752 - [81 FR 69291](https://www.federalregister.gov/documents/2016/10/05/2016-23387/section-707-regarding-disguised-sales-generally) (2016): Section 707 Regarding Disguised Sales, Generally - [71 FR 59669](https://www.federalregister.gov/documents/2006/10/11/E6-16719/treatment-of-disregarded-entities-under-section-752) (2006): Treatment of Disregarded Entities Under Section 752 - [70 FR 30334](https://www.federalregister.gov/documents/2005/05/26/05-10266/assumption-of-partner-liabilities) (2005): Assumption of Partner Liabilities - [66 FR 715](https://www.federalregister.gov/documents/2001/01/04/01-202/partnership-mergers-and-divisions) (2001): Partnership Mergers and Divisions - [65 FR 64888](https://www.federalregister.gov/documents/2000/10/31/00-27826/allocation-of-partnership-debt) (2000): Allocation of Partnership Debt ## Leading cases - [Commissioner v. Tufts, 461 U.S. 300 (1983)](https://www.courtlistener.com/opinion/110924/commissioner-v-tufts/) - [Marriott International Resorts v. United States, 586 F.3d 962 (Fed. Cir. 2009)](https://www.courtlistener.com/opinion/207841/marriott-international-resorts-lp-v-united-states/) - [Kornman & Associates v. United States, 527 F.3d 443 (5th Cir. 2008)](https://www.courtlistener.com/opinion/61651/kornman-associates-inc-v-united-states/) ## Proposed regulations (not in force) - [Prop. Treas. Reg. § 1.752-5](/26/prop/1.752-5_2014-01637.md): Effective dates and transitional rules. (REG-119305-11, proposed 2014-01-30) - [Prop. Treas. Reg. § 1.752-2](/26/prop/1.752-2_2016-25104.md): Partner's share of recourse liabilities. (REG-130314-16, proposed 2016-10-21) ## Connections Cites: none Cited by: § 108 Income from discharge of indebtedness; § 170 Charitable, etc., contributions and gifts; § 465 Deductions limited to amount at risk ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 251