# Pub. L. 106-36: changes to the Internal Revenue Code

1999-06-25, 113 Stat. 183. Source: <https://www.govinfo.gov/link/plaw/106/public/36>.

## Legislative history

- Bill: [H.R. 435](https://www.congress.gov/bill/106th-congress/house-bill/435)
- Senate report: [S. Rept. 106-2](https://www.govinfo.gov/content/pkg/CRPT-106srpt2/html/CRPT-106srpt2.htm)
- Bluebook: [JCT general explanation (2001)](https://www.govinfo.gov/app/details/CPRT-107JPRT72236)

## § 351: Transfer to corporation controlled by transferor

- § 351(h)(1): Pub. L. 106–36 struck out “, or acquires property subject to a liability,” after “liability”.

## § 357: Assumption of liability

- § 357(a): Pub. L. 106–36, § 3001(d)(2), struck out “or acquisition” after “assumption” in concluding provisions.
- § 357(a)(2): Pub. L. 106–36, § 3001(a)(1), struck out “, or acquires from the taxpayer property subject to a liability” before comma at end.
- § 357(b): Pub. L. 106–36, § 3001(d)(2), (3), struck out “or acquisition” after “assumption” wherever appearing and struck out “or acquired” after “liability assumed” in concluding provisions of par. (1).
- § 357(c)(1): Pub. L. 106–36, § 3001(d)(4), struck out “, plus the amount of the liabilities to which the property is subject,” after “liabilities assumed” in concluding provisions.
- § 357(c)(3)(A): Pub. L. 106–36, § 3001(d)(5), struck out “or to which the property transferred is subject” after “liabilities assumed” in concluding provisions.
- § 357(d): Pub. L. 106–36, § 3001(b)(1), added subsec. (d).

## § 358: Basis to distributees

- § 358(d)(1): Pub. L. 106–36 struck out “or acquired from the taxpayer property subject to a liability” after “liability of the taxpayer” and “or acquisition (in the amount of the liability)” after “such assumption”.

## § 362: Basis to corporations

- § 362(d): Pub. L. 106–36 added subsec. (d).

## § 368: Definitions relating to corporate reorganizations

- § 368(a)(1)(C): Pub. L. 106–36, § 3001(a)(3)(A), struck out “, or the fact that property acquired is subject to a liability,” before “shall be disregarded”.
- § 368(a)(2)(B): Pub. L. 106–36, § 3001(a)(3)(B), which directed amendment of concluding provisions by striking out “, and the amount of any liability to which any property acquired from the acquiring corporation is subject,”, was executed by striking out “, and the amount of any liability to which any property acquired by the acquiring corporation is subject,” after “acquiring corporation”, to reflect the probable intent of Congress.

## § 584: Common trust funds

- § 584(h)(3)(A): Pub. L. 106–36, § 3001(c)(1)(A), struck out “, and the fact that any property transferred by the common trust fund is subject to a liability,” before “shall be disregarded”.
- § 584(h)(3)(B)(ii): Pub. L. 106–36, § 3001(c)(1)(B), added cl. (ii) and struck out heading and text of former cl. (ii). Text read as follows: “For purposes of clause (i), the term ‘assumed liabilities’ means the aggregate of—
- § 584(h)(3)(C): Pub. L. 106–36, § 3001(c)(1)(B), added subpar. (C).

## § 1031: Exchange of real property held for productive use or investment

- § 1031(d): Pub. L. 106–36, in last sentence, substituted “assumed (as determined under section 357(d)) a liability of the taxpayer” for “assumed a liability of the taxpayer or acquired from the taxpayer property subject to a liability” and struck out “or acquisition (in the amount of the liability)” after “such assumption”.