How Is the Transfer of Liabilities in a Property Transaction

question 5

Essay

How is the transfer of liabilities in a property transaction generally treated for tax purposes? How is a transfer of liabilities generally treated in a § 351 transaction? What exceptions could arise to this usual treatment in a § 351 setting?

---

Definitions:

Escape To Freedom

The act of fleeing from captivity or oppression to a state of liberty, often used in the context of slaves escaping bondage.

Maryland

A U.S. state characterized by its rich history, including influential roles in the early colonial period, the American Revolution, and the Civil War.

Alabama

A state in the southeastern region of the United States, known for its rich history in civil rights and as a key battleground in the American Civil War.

Harriet Tubman

An African American abolitionist, humanitarian, and during the American Civil War, a Union spy, best known for her role in helping enslaved people escape through the Underground Railroad.