(a) Increase in partner’s liabilities. — Any increase in a partner’s share of the liabilities of a partnership of which the partner is personally responsible pursuant to the laws under which the partnership was organized, or which such partner secures, or any increase in a partner’s individual liabilities by reason of the assumption by such partner of partnership liabilities, shall be considered as a contribution of money by such partner to the partnership.(b) Decrease in partner’s liabilities. — Any decrease in a partner’s share of the liabilities of a partnership of which the partner is personally responsible pursuant to the laws under which the partnership was organized or which such partner secures, or any decrease in a partner’s individual liabilities by reason of the assumption by the partnership of such individual liabilities, shall be considered as a distribution of money to the partner by the partnership.(c) Liability to which property is subject. — For purposes of this section, a liability to which property is subject shall, to the extent of the fair market value of such property, be considered as a liability of the owner of the property provided that the partner is

ection, a liability to which property is subject shall, to the extent of the fair market value of such property, be considered as a liability of the owner of the property provided that the partner is personally responsible pursuant to the laws under which the partnership was organized, or that such partner secures said liabilities.(d) Sale or exchange of an interest. — In the case of a sale or exchange of an interest in a partnership, liabilities shall be treated in the same manner as liabilities in connection with the sale or exchange of property not associated with partnerships. History —Jan. 31, 2011, No. 1, § 1075.02, retroactive to Jan. 1, 2011.