In a transaction, who assumes liabilities in 'amount realized'?

In the context of a transaction involving the sale of property, the buyer assumes the liabilities included in the 'amount realized.' The 'amount realized' typically encompasses the total consideration received from the buyer, which can include cash, other property received, and any liabilities that the seller may be relieved of as part of the transaction.

When a buyer purchases property, they often agree to take on certain liabilities associated with that property, such as outstanding mortgages or other debts. This increases the overall 'amount realized' by the seller because not only do they receive cash, but they also are considered to have received value from the assumption of those liabilities. Therefore, in a sale scenario, the buyer plays a crucial role in effectively increasing the total amount that the seller realizes upon the sale by taking on those obligations.