St. Charles Investment Co., Burton C. Boothby, Tax Matters Person - Page 16

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          Bulova Watch Co. v. United States, 365 U.S. 753, 758 (1961).                
          However, when two statutes are capable of coexistence, "it is the           
          duty of the courts, absent a clearly expressed congressional                
          intention to the contrary, to regard each as effective."  Vimar             
          Seguros y Reaseguros, S.A. v. M/V Sky Reefer, 515 U.S. 528, 533             
          (1995); see DeSalvo v. IRS, 861 F.2d 1217, 1219 (10th Cir. 1988).           
               Petitioner points to section 469(b), (f)(2), and (g)(1) to             
          sustain this position.  Petitioner argues that the clause "Except           
          as otherwise provided in this section" (emphasis added) in                  
          section 469(b) dictates the conclusion that section 1371(b)(1),             
          not being in section 469, does not apply to PAL's and, therefore,           
          St. Charles should be allowed to use the suspended PAL's.                   
               As previously noted, see supra pp. 4-5, section 469(b)                 
          provides:  "Except as otherwise provided in this section, any               
          loss or credit from an activity which is disallowed under                   
          subsection (a) shall be treated as a deduction or credit                    
          allocable to such activity in the next taxable year."                       
               Section 469(b) accomplishes two things:  (1) It maintains              
          the deductibility of suspended PAL's activity by activity,                  
          important to the overall working of section 469, and (2) it                 
          allows the taxpayer further opportunity to take such a loss.                
          Even without the interplay of section 1371(b)(1), section 469(b)            
          does not mean the taxpayer must recognize the loss in the                   
          immediately following year; the taxpayer may not have sufficient            

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