A bill to amend the Internal Revenue Code of 1986 to prevent the duplication of losses through the assumption of liabilities giving rise to a deduction.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code respecting corporate exchange distributee basis to provide for basis reduction (up to fair market value) by any assumed liability, except if: (1) the business associated with such liability is transferred to the person assuming such liability; or (2) substantially all of the assets associated with such liability are transferred to such person.…