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no relief from their financial burdens as a result of the section
351 transaction and that the recognition of gain is unfair under
these circumstances. Despite the reasons for or the results of
petitioners’ section 351 transaction, petitioners are responsible
for the tax consequences. The U.S. Supreme Court has observed
repeatedly that, “while a taxpayer is free to organize his
affairs as he chooses, nevertheless, once having done so, he must
accept the tax consequences of his choice, whether contemplated
or not, * * * and may not enjoy the benefit of some other route
he might have chosen to follow but did not.” Commissioner v.
National Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 149
(1974) (citations omitted).
In 1999, Congress enacted changes to section 357(c) that
were effective for transactions occurring after October 18, 1998.
See Miscellaneous Trade and Technical Corrections Act of 1999,
Pub. L. 106-36, sec. 3001(e), 113 Stat. 127, 184. The amendment
struck the words ”plus the amount of liabilities to which the
property is subject,” from section 357(c)(1) and essentially
provided relief for the taxpayer who transferred assets subject
to liabilities and remained personally liable on the debt, but
where the corporation did not assume the liability. Id. sec.
3001(d)(4), 113 Stat. 182. Congress also added section 357(d),
which provides guidance in determining the amount of liabilities
that are assumed and states in section 357(d)(1)(A) that “a
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