Seggerman Farms, Incorporated - Page 14




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          recourse liability (or portion thereof) shall be treated as                 
          having been assumed if * * * the transferee has agreed to, and is           
          expected to, satisfy such liability (or portion), whether or not            
          the transferor has been relieved of such liability”.  Id. sec.              
          3001(b), 113 Stat. 182.                                                     
               The 1999 amendment does not apply to these cases, because              
          the transactions in these cases occurred in 1993.  Even if                  
          section 357(d)(1)(A) as enacted in 1999 did apply, petitioners’             
          personal liability on the debt that was transferred to the                  
          corporation would continues to be irrelevant.  Even after                   
          congressional amendments to section 357, Congress has refrained             
          from providing relief to taxpayers in petitioners’ situation.               
               We conclude that under section 357 petitioners must                    
          recognize a gain on the transfer of assets to Seggerman Farms.              
               To reflect the foregoing and concessions of the parties,               
                                                  Decisions will be entered           
                                             under Rule 155.                          


















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Last modified: May 25, 2011