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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>26 CFR 1.752-1 - Treatment of partnership liabilities includes the following definition for purposes of section 752:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>(4)(ii)Obligation. For purposes of this paragraph and § 1.752-7, an obligation is any fixed or contingent obligation to make payment without regard to whether the obligation is otherwise taken into account for purposes of the Internal Revenue Code. Obligations include, but are not limited to, debt obligations, environmental obligations, tort obligations, contract obligations, pension obligations, obligations under a short sale, and obligations under derivative financial instruments such as options, forward contracts, futures contracts, and swaps. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Don’t have an immediate answer to the more general question of what written records are required by the IRS to establish an obligation, however.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>James B. Hoff<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>CoRE Law, PLLC<o:p></o:p></span></b></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>3030 W. Commodore Way, Suite A-302<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>Seattle, WA 98199</span><span style='color:#0D0D0D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>Telephone: (206) 443-1616</span><span style='color:#0D0D0D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>Fax: (206) 443-2626</span><span style='color:#0D0D0D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>Mobile: (206) 465-1000</span><span style='color:#0D0D0D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'>Email: <a href="mailto:jhoff@corelaw.com" title="mailto:jhoff@corelaw.com"><span style='color:#0D0D0D'>jhoff@corelaw.com</span></a></span><span style='color:#0D0D0D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#0D0D0D'>Website: </span><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#0D0D0D'><a href="http://www.corelaw.com/"><span style='color:#0D0D0D'>www.corelaw.com</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Roger Hawkes<br><b>Sent:</b> Saturday, February 24, 2018 8:09 AM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> Re: [WSBARP] guarantee of commercial loan<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>If I were defending the verbal promisors I would certainly assert that. and probably win. The real question though is as between the verbal indemnity promisors and the IRS; if they assert their share of basis, what would the IRS do?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Roger Hawkes, WSBA 5173<o:p></o:p></p><p class=MsoNormal>19909 Ballinger Way NE<o:p></o:p></p><p class=MsoNormal>Shoreline, WA 98155<o:p></o:p></p><p class=MsoNormal><a href="http://www.hawkeslawfirm.com/">www.hawkeslawfirm.com</a><o:p></o:p></p><p class=MsoNormal>206 367 5000 voice<o:p></o:p></p><p class=MsoNormal>206 367 4005 fax<o:p></o:p></p></div><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> Ralph Maimon [<a href="mailto:rmaimon@maimonlaw.com">mailto:rmaimon@maimonlaw.com</a>] <br><b>Sent:</b> Friday, February 23, 2018 8:02 PM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>>; 'WSBA Real Property Listserv' <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>>; 'Business Law Section' <<a href="mailto:business-law-section@list.wsba.org">business-law-section@list.wsba.org</a>><br><b>Subject:</b> Re: [WSBARP] guarantee of commercial loan<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><div id=compose-container><div><div><div><p class=MsoNormal>Doesn’t the statute of frauds apply here, roger? But there are ways to avoid it. <o:p></o:p></p></div></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Get <a href="https://aka.ms/o0ukef">Outlook for iOS</a><o:p></o:p></p></div></div></div><div class=MsoNormal align=center style='text-align:center'><hr size=3 width="98%" align=center></div><div id=divRplyFwdMsg><p class=MsoNormal><b><span style='color:black'>From:</span></b><span style='color:black'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>> on behalf of Roger Hawkes <<a href="mailto:Roger@law-hawks.com">Roger@law-hawks.com</a>><br><b>Sent:</b> Thursday, February 22, 2018 5:01:28 PM<br><b>To:</b> 'WSBA Real Property Listserv'; 'Business Law Section'<br><b>Subject:</b> [WSBARP] guarantee of commercial loan</span> <o:p></o:p></p><div><p class=MsoNormal> <o:p></o:p></p></div></div><div><div><p class=MsoNormal>Clients are a small group who purchase a small building with a bank loan. Some partners officially guaranteed the loan by signing personal guarantees. Some partners did not sign any such guarantees but promised the other partners to pony up their pro rata share if the guarantors ever had to pay. Do the verbal guarantors get a portion of the basis assigned to them? Any cite to code or cfr or revenue ruling would be appreciated.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Roger Hawkes, WSBA 5173<o:p></o:p></p><p class=MsoNormal>19909 Ballinger Way NE<o:p></o:p></p><p class=MsoNormal>Shoreline, WA 98155<o:p></o:p></p><p class=MsoNormal><a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.hawkeslawfirm.com_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=48uCzqbn0A0fuu0Vx7HiXuyvQSYkBeVAtLY41jGTlHo&m=PNfixGKMJ7dpZL0EJ8K45I8oWF2y0YXRcaSB6yHZT9c&s=ULgdDszOdSR_DLhfN0wZT5cXPvV_K3bzRwaSsdFeLAI&e=">www.hawkeslawfirm.com</a><o:p></o:p></p><p class=MsoNormal>206 367 5000 voice<o:p></o:p></p><p class=MsoNormal>206 367 4005 fax<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p></div></div></div></body></html>