- 6 - OPINION Respondent contends that petitioners must reduce Susan's NOL to zero because they excluded COD income pursuant to section 108.6 Petitioners first argue that James' release from his 5(...continued) NOL generated in 1991 878,025 439,012 439,013 NOL before sec. 108 Reduction 3,113,444 1,556,719 1,556,725 Sec. 108 NOL Reduction in 1990 (751,610) (751,610) -0- Sec. 108 NOL Reduction in 1991 (708,059) (708,059) -0- NOL carryover to 1992 1,653,775 97,050 1,566,725 NOL utilized in 1992(1,166,045) (97,050) (1,068,995) Carryforward to 1993 487,730 -0- 487,730 6 Sec. 108, in pertinent part, provides: (a) Exclusion From Gross Income.-- (1) In General.--Gross income does not include any amount which (but for this subsection) would be includible in gross income by reason of the discharge (in whole or in part) of indebtedness of the taxpayer if-- * * * * * * * (B) the discharge occurs when the taxpayer is insolvent, * * * * * * * (b) Reduction of Tax Attributes.-- (1) In General.--The amount excluded from gross income under subparagraph (A), (B), or (C) of subsection (a)(1) shall be applied to reduce the tax attributes of the taxpayer as provided in paragraph (2). (2) Tax Attributes Affected; Order of Reduction.-- Except as provided in paragraph (5), the reduction referred (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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