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Petitioners stipulated that the partnership interest was
community property. Under Texas law, therefore, income and
deductions attributable to the partnership interest are
petitioners' community property.
We conclude that Susan had a community interest in the COD
income of the partnership that flowed through to James (i.e., she
owned one-half of the COD income). Thus, under section 108(b),
petitioners must reduce Susan's NOL by her COD income.
To reflect the foregoing,
Decision will be entered
under Rule 155.
9(...continued)
court we may look to the State's lower courts' rulings and
holdings. Commissioner v. Estate of Bosch, 387 U.S. 456, 465
(1967).
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Last modified: May 25, 2011