In a complete liquidation, a liability assumed by a shareholder reduces the shareholder's amount realized.

Name: In a complete liquidation, a liability assumed by a shareholder reduces the shareholder's amount realized.
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When a shareholder assumes a liability in a complete liquidation, it reduces the amount realized by the shareholder. This is because the shareholder is effectively paying off the liability, which comes out of their distribution in the liquidation.

In a Complete Liquidation, a Liability Assumed by a Shareholder