To amend the Internal Revenue Code of 1986 to provide that the transfer of property subject to a liability shall be treated in the same manner as the transfer of property involving an assumption of liability.
The source supplies the latest action, but no lifecycle stage.
Latest action (19 Oct 1998): Referred to the House Committee on Ways and Means.
What this bill does
H.R. 4852, introduced in 1998, aims to change how certain business transactions are treated for tax purposes. Specifically, it proposes that when a business transfers property that has a debt attached to it, this would be treated the same way as if the new owner explicitly agreed to take on that debt. This change would affect corporations, their shareholders, and the way certain business assets and liabilities are handled.
The bill seeks to clarify and modify sections of the Internal Revenue Code related to corporate reorganizations and tax consequences of asset and liability transfers. It introduces new rules for determining when a liability is considered "assumed" by a transferee, covering both recourse and nonrecourse liabilities. The bill also adds limitations on increasing the tax basis of property based on assumed liabilities in certain situations.
This legislation was introduced in the House of Representatives and referred to the Committee on Ways and Means. As of its introduction in October 1998, it had not progressed further in the legislative process. If it were to advance, it would require consideration and potential amendment by the committee, followed by votes in the House and then the Senate.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Amends the Internal Revenue Code to revise provisions concerning a corporation, its shareholders, and the transferring of certain assets and liabilities.
Timeline
19 Oct 1998
Referred to the House Committee on Ways and Means.
Common questions
- What does H.R. 4852 do?
- H.R. 4852, introduced in 1998, aims to change how certain business transactions are treated for tax purposes. Specifically, it proposes that when a business transfers property that has a debt attached to it, this would be treated the same way as if the new owner explicitly agreed to take on that debt. This change would affect corporations, their shareholders, and the way certain business assets and liabilities are handled. The bill seeks to clarify and modify sections of the Internal Revenue Code related to corporate reorganizations and tax consequences of asset and liability transfers. It introduces new rules for determining when a liability is considered "assumed" by a transferee, covering both recourse and nonrecourse liabilities. The bill also adds limitations on increasing the tax basis of property based on assumed liabilities in certain situations. This legislation was introduced in the House of Representatives and referred to the Committee on Ways and Means. As of its introduction in October 1998, it had not progressed further in the legislative process. If it were to advance, it would require consideration and potential amendment by the committee, followed by votes in the House and then the Senate.
- Has H.R. 4852 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 4852. Check the latest action and official source below.
- Who sponsored H.R. 4852?
- H.R. 4852 was sponsored by Rep. Archer, Bill [R-TX-7] (R-TX), with 0 cosponsors.
- What's the latest action on H.R. 4852?
- Referred to the House Committee on Ways and Means. (19 Oct 1998).
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