# Partnership assumption of partner's § 1.752-7 liability on or after June 24, 2003.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document corrects final regulations (TD 9207) that were published in the *Federal Register* on Thursday, May 26, 2005 (70 FR 30334). The final regulation relates to the definition of liabilities under section 752 of the Internal Revenue Code.
**DATES:**
This correction is effective on May 26, 2005.
**FOR FURTHER INFORMATION CONTACT:**
Laura Fields (202) 622-3050 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations (TD 9207) that are the subject of this correction are under sections 358, 704, 705, 737 and 752 of the Internal Revenue Code.
**Need for Correction**
As published, TD 9207 contains an error that may prove to be misleading and is in need of clarification.
**List of Subject in 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**26 CFR Part 1**
**Correction of Publication**
Accordingly, 26 CFR Part 1 is corrected by making the following correcting amendment:
**PART 1—INCOME TAXES**
*Paragraph 1.* The authority citation for part 1 continues to read, in part, as follows:
**Authority:**
26 U.S.C. 7805 * * *
**26 CFR Part 1**
In § 1.752-7(g)(5), paragraph (iii) of the *Example,* the table is revised as follows:
§ 1.752-7
(g) * * *
(5) Examples (i) * * *
(iii) * * *
| | |
| --- | --- |
| 1. Basis in Property 1 after distribution | $3 |
| 2. Plus lesser of remaining built-in loss | |
| ($2) or amount paid to satisfy liability ($1) | 1 |
| 3. Basis in Property 1 after satisfaction of liability | $4 |
Cynthia Grigsby,
Acting Chief, Publications and Regulations Branch, Legal Processing Division Associate Chief Counsel (Procedure and Administration).