Page Range | 80993-80994 | |
FR Document | 2016-27517 |
[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)] [Rules and Regulations] [Pages 80993-80994] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27517] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9788] RIN 1545-BM84 Liabilities Recognized as Recourse Partnership Liabilities Under Section 752; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. ----------------------------------------------------------------------- SUMMARY: This document contains corrections to final and temporary regulations (TD 9788) that were published in the Federal Register on Wednesday, October 5, 2016 (81 FR 69282). The final and temporary regulations provide rules concerning how liabilities are allocated for purposes of section 707 of the Internal Revenue Code and when certain obligations are recognized for purposes of determining whether a liability is a recourse partnership liability under section 752. DATES: This correction is effective November 17, 2016 and is applicable on and after January 3, 2017. FOR FURTHER INFORMATION CONTACT: Caroline E. Hay or Deane M. Burke (202) 317-5279 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The final and temporary regulations (TD 9788) that are the subject of this correction are under sections 707 and 752 of the Internal Revenue Code. Need for Correction As published, the final and temporary regulations (TD 9788) contain errors that may prove to be misleading and are in need of clarification. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: [[Page 80994]] PART 1--INCOME TAXES 0 Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 1.707-5T also issued under 26 U.S.C. 707(a)(2)(B). 0 Par. 2. Section 1.707-5T is amended by revising paragraph (a)(2)(i); and paragraph (f) Example 7 (i) is amended by revising the second to last sentence. The revisions read as follows: Sec. 1.707-5T Disguised sales of property to partnership; special rules relating to liabilities (temporary). (a) * * * (2) * * * (i) In general. For purposes of Sec. 1.707-5, a partner's share of a liability of a partnership, as defined in Sec. 1.752-1(a) (whether a recourse liability or a nonrecourse liability) is determined by applying the same percentage used to determine the partner's share of the excess nonrecourse liability under Sec. 1.752-3(a)(3) (as limited in its application to this paragraph (a)(2)), but such share shall not exceed the partner's share of the partnership liability under section 752 and applicable regulations (as limited in the application of Sec. 1.752-3(a)(3) to this paragraph (a)(2)). * * * * * (f) * * * Example 7. * * * (i) * * * For disguised sale purposes, assume that G's and H's share of liability 1 is $2,000 each in accordance with paragraph (a)(2) of this section (which determines a partner's share of a liability using the percentage under Sec. 1.752-3(a)(3), but not exceeding the partner's share of the liability under section 752 and applicable regulations). * * * * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2016-27517 Filed 11-16-16; 8:45 am] BILLING CODE 4830-01-P
Category | Regulatory Information | |
Collection | Federal Register | |
sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
Publisher | Office of the Federal Register, National Archives and Records Administration | |
Section | Rules and Regulations | |
Action | Correcting amendment. | |
Dates | This correction is effective November 17, 2016 and is applicable on and after January 3, 2017. | |
Contact | Caroline E. Hay or Deane M. Burke (202) 317-5279 (not a toll-free number). | |
FR Citation | 81 FR 80993 | |
RIN Number | 1545-BM84 | |
CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |