- 16 - 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...)Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
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