### Question
How does the law define assumed liabilities?


### Answer
Under *26 U.S.C. § 584*, **assumed liabilities** is defined as:

> the aggregate of—


(I) any liability of the common trust fund assumed by any regulated investment company in connection with the transfer referred to in paragraph (1)(A), and


(II) any liability to which property so transferred is subject

#### Citation:
  - *26 U.S.C. § 584*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter H-Banking Institutions > PART I-RULES OF GENERAL APPLICA-**

