105 T.C. No. 21
UNITED STATES TAX COURT
KRISTINE A. CLUCK, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 18590-91. Filed October 30, 1995.
P is married to E. E is not a petitioner in this case.
E's mother, M, died in 1983, leaving E and his brothers a
tract of land (G). G was sold in 1984. P and E have filed
joint Federal income tax returns since 1986. P and E
claimed net operating loss (NOL) deductions on their 1987 and
1988 returns, consisting of unused NOL's carried forward from
E's 1983, 1984, and 1985 returns and from P and E's 1986 joint
return. In 1989, after a dispute with R regarding the value
of G for purposes of M's estate's Federal estate tax liability,
E and his brothers, who each had owned a one-fourth interest in
G, entered into an agreement with R. Pursuant to the agreement,
G was valued at $1,420,000. R disallowed the 1984 portion of
the 1987 and 1988 NOL's on the ground that E had unreported
income from the sale of G in 1984, sufficient to eliminate the
1984 loss. P argued that E did not have unreported income
in 1984 because E's basis in G was $625,000, which exceeded his
amount realized ($619,425). R argued that P was estopped by
the duty of consistency from arguing that E's basis was
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011