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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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