# Assumption of Liabilities
> **IRS** · Final regulations and removal of temporary regulations. · Published 2008-05-09 · Effective 2008-05-09 · 73 FR 26321
## Document
- **Document number:** E8-10454
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 73 FR 26321
- **CFR reference:** 26 CFR 1
- **Publication date:** 2008-05-09
- **Effective date:** 2008-05-09
- **Treasury docket:** TD 9397
## Abstract

This document contains final regulations relating to the assumption of liabilities under section 358(h) of the Internal Revenue Code (Code). Section 358(h) provides that, after application of section 358(d), the basis in stock received in a nonrecognition transaction shall be reduced to the fair market value of the stock by the amount of any liability assumed in the exchange. The Treasury Department and the IRS have determined that removing an exception to section 358(h) is necessary to prevent abuse. These regulations affect corporations and their shareholders.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2008/05/09/E8-10454/assumption-of-liabilities)
---
*AI Analytics · CC0 1.0*