- 12 -
petitioner contends that the 2.546 acres of land to be received by him
pursuant to the Agreement was never received and, therefore, did not result in
a taxable event.
Petitioner's rights to consideration for his stock in TSI were fixed in
the 1988 Agreement. Although petitioner may have negotiated the sale in the
1985 agreement, his right to receive consideration was not determined until
the 1988 Agreement. Furthermore, it is clear to us that the Agreement
provides for petitioner's receipt of cash, real estate, and the assumption of
liabilities in exchange for his stock interest in TSI. Petitioner has not
provided us with evidence to treat the sale otherwise. Moreover, petitioner
has offered no evidence as to his basis, if any, in the TSI stock at the time
of sale.
Accordingly, we sustain respondent's determination adjusted for her
concessions.
Issue 5. Net Operating Loss And Business Credit Carryforward
Respondent has disallowed the utilization of net operating loss and
business credit12 carryforwards.
A net operating loss is the excess of the deductions allowed over the
gross income. Sec. 172(c). A net operating loss for any taxable year may be
carried back to each of the 3 taxable years preceding the taxable year of the
loss and carried forward to each of the 15 taxable years following the taxable
year of the loss. Sec. 172(b). The burden of proof is on the taxpayer to
prove the fact and the amount of the loss. Rule 142(a); Welch v. Helvering,
290 U.S. 111 (1933); Larabee v. Commissioner, T.C. Memo. 1989-298.
11(...continued)
claims is includable is substantially less than the amount of
capital gain income asserted by respondent.
12
Petitioner asserts that respondent has conceded this issue.
We find no merit to this argument. This was an issue in the
notice of deficiency and has continued to be argued throughout
the proceedings.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011