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II. Carryover Deductions
The years in issue in the instant case are 1986, 1987, and
1988. The deficiencies that respondent determined in the instant
case result from the disallowance of deductions carried over from
1983. In order to redetermine these deficiencies we must
consider whether an item arose in 1983, whether the item is of
the sort that might give rise to a carryover to the years in
issue, and if so, then what is the nature and amount of the item.
Sec. 6214(b);10 Hill v. Commissioner, 95 T.C. 437, 439-444
(1990), and cases cited therein. In general, the nature and
amount of the carryover item is determined and redetermined under
the law in effect for the year in which the carryover item arose
(1983), rather than the year(s) to which the carryover item is
carried. Sec. 172(e).
10 Sec. 6214 provides, in pertinent part, as follows:
SEC. 6214. DETERMINATIONS BY TAX COURT.
* * * * * * *
(b) Jurisdiction Over Other Years and Quarters.--The
Tax Court in redetermining a deficiency of income tax for
any taxable year or of gift tax for any calendar year or
calendar quarter shall consider such facts with relation to
the taxes for other years or calendar quarters as may be
necessary correctly to redetermine the amount of such
deficiency, but in so doing shall have no jurisdiction to
determine whether or not the tax for any other year or
calendar quarter has been overpaid or underpaid.
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