All accounts payable of a cash basis taxpayer are included as liabilities under § 357(c) in determining whether liabilities exceed basis.

Name: All accounts payable of a cash basis taxpayer are included as liabilities under § 357(c) in determining whether liabilities exceed basis.
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Under a cash basis taxpayer, accounts payable are not considered liabilities for the purpose of § 357(c) because they have not been recognized as expenses or liabilities in the taxpayer's accounting records.

All Accounts Payable of a Cash Basis Taxpayer Are Included