Mary K. Fisher and Charles F. Patterson, et al. - Page 16

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          gross income.  Sec. 172(c).  An NOL for any taxable year is first           
          carried back to each of the 3 taxable years preceding the taxable           
          year of the loss and then carried over to each of the 15 taxable            
          years following the taxable year of the loss.  Sec. 172(b)(1)(A)            
          and (B) and (b)(2).  A taxpayer may elect to forgo the carryback            
          period, and carry over the entire NOL.  Sec. 172(b)(3).  The                
          amount of an NOL, as well as the carryback and carryforward                 
          periods, is to be determined pursuant to the law applicable to              
          the year in which the losses occurred, without regard to the law            
          applicable to other years to which the losses are carried back or           
          forward.  Reo Motors, Inc. v. Commissioner, 338 U.S. 442, 446               
          (1950).  The taxpayer bears the burden of proving the fact and              
          the amount of the loss.  Rule 142(a); Ocean Sands Holding Corp.             
          v. Commissioner, T.C. Memo. 1980-423, affd. without published               
          opinion 701 F.2d 167 (4th Cir. 1983).                                       
               Respondent argues that petitioner has not established that             
          he incurred the losses in question.7  Petitioner has failed to              
          present any evidence, including books, records, or tax returns              
          for the years 1988 through 1990, to substantiate the claimed                
          losses.8  Apart from his broad assertion that he is entitled to             

          7  Respondent also argues that petitioner did not properly                  
          elect to forgo the 3-year net operating loss carryback period.              
          We need not, and do not, address this issue.                                
          8  We recognize that petitioner's returns for the years 1988                
          through 1990 would not, standing alone, establish that petitioner           
                                                             (continued...)           





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