If a taxpayer is relieved of a liability on the disposition of property, the amount of the liability should be included in the amount realized on the sale or other disposition.

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According to IRS regulations, if a taxpayer is relieved of a liability on the disposition of property, the amount of the liability should be included in the amount realized on the sale or other disposition. This is because the liability is considered to be part of the seller's proceeds.

If a Taxpayer Is Relieved of a Liability on the Disposition