[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.752-5]

[Page 566]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.752-5  Effective dates and transition rules.

    (a) In general. Unless a partnership makes an election under 
paragraph (b)(1) of this section to apply the provisions of Sec. Sec. 
1.752-1 through 1.752-4 earlier, Sec. Sec. 1.752-1 through 1.752-4 
apply to any liability incurred or assumed by a partnership on or after 
December 28, 1991, other than a liability incurred or assumed by the 
partnership pursuant to a written binding contract in effect prior to 
December 28, 1991 and at all times thereafter. However, Sec. 1.752-
3(a)(3) fifth, sixth, and seventh sentences, (b), and (c) Example 3, do 
not apply to any liability incurred or assumed by a partnership prior to 
October 31, 2000. Nevertheless, Sec. 1.752-3(a)(3) fifth, sixth, and 
seventh sentences, (b), and (c) Example 3, may be relied upon for any 
liability incurred or assumed by a partnership prior to October 31, 2000 
for taxable years ending on or after October 31, 2000. In addition, 
Sec. 1.752-1(f) last sentence and (g) Example 2, do not apply to any 
liability incurred or assumed by a partnership prior to January 4, 2001. 
Nevertheless, Sec. 1.752-1(f) last sentence and (g) Example 2, may be 
relied on for any liability incurred or assumed by a partnership prior 
to January 4, 2001 and, unless the partnership makes an election under 
paragraph (b)(1) of this section, on or after December 28, 1991, other 
than a liability incurred or assumed by the partnership pursuant to a 
written binding contract in effect prior to December 28, 1991 and at all 
times thereafter. For liabilities incurred or assumed by a partnership 
prior to December 28, 1991 (or pursuant to a written binding contract in 
effect prior to December 28, 1991 and at all times thereafter), unless 
an election to apply these regulations has been made, see Sec. Sec. 
1.752-0T to 1.752-4T, set forth in 26 CFR 1.752-0T through 1.752-4T as 
contained in 26 CFR edition revised April 1, 1991, (TD 8237, TD 8274, 
and TD 8355) and Sec. 1.752-1, set forth in 26 CFR 1.752-1 as contained 
in 26 CFR edition revised April 1, 1988 (TD 6175 and TD 6500).
    (b) Election--(1) In general. A partnership may elect to apply the 
provisions of Sec. Sec. 1.752-1 through 1.752-4 to all of its 
liabilities to which the provisions of those sections do not otherwise 
apply as of the beginning of the first taxable year of the partnership 
ending on or after December 28, 1991.
    (2) Time and manner of election. An election under this paragraph 
(b) is made by attaching a written statement to the partnership return 
for the first taxable year of the partnership ending on or after 
December 28, 1991. The written statement must include the name, address, 
and taxpayer identification number of the partnership making the 
statement and contain a declaration that an election is being made under 
this paragraph (b).
    (c) Effect of section 708(b)(1)(B) termination on determining date 
liabilities are incurred or assumed. For purposes of applying this 
section, a termination of the partnership under section 708(b)(1)(B) 
will not cause partnership liabilities incurred or assumed prior to the 
termination to be treated as incurred or assumed on the date of the 
termination.

[T.D. 8380, 56 FR 66356, Dec. 23, 1991, as amended by T.D. 8906, 65 FR 
64890, Oct. 31, 2000; T.D. 8925, 66 FR 723, Jan. 4, 2001]