- 40 -                                         
          of section 267(f).  It follows, for the same reasons, that                  
          Tracinda is not entitled to increase its basis in the UA shares             
          by the amount of the UA Loss.33                                             
                                        An appropriate order will be                  
                                   issued (1) granting TBS' motion for                
                                   partial summary judgment, (2)                      
                                   granting Tracinda's motion                         
                                   for partial summary judgment as to                 
                                   the section 311 issue and denying                  
                                   it as to the section 267 issue, and                
                                   (3) denying respondent's motion                    
                                   for summary judgment.                              
               33In regard to TBS, respondent's notice of deficiency                  
          provides further grounds for the disallowance of the UA Loss.               
          Respondent contends that the capital loss carryover, which in               
          part is made up of the UA Loss, is not permitted under secs. 269,           
          382, and 383.  Neither the parties' motions nor this opinion                
          addresses these issues.                                                     
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