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net operating loss. On this record, the Court holds that
petitioner did not make a valid election under section
172(b)(3)(C) for 1985, 1986, or 1987.
Under section 172(b)(2), in the event a proper election is
not made under section 172(b)(3)(C), a carryforward of any net
operating loss is allowable only to the extent that the loss
exceeds the taxable income for the years of a carryback,
regardless of whether a carryback was in fact claimed. Lone
Manor Farms, Inc. v. Commissioner, 61 T.C. 436, 441-442 (1974),
affd. without published opinion 510 F.2d 970 (3d Cir. 1975); sec.
1.172-4(b)(1) and (2), Income Tax Regs. Petitioner did not offer
any evidence to show that the claimed 1985, 1986, and 1987 net
operating losses would not have been absorbed through the
operation of the 3-year carryback.7 Consequently, the Court
holds that petitioner is not entitled to carry over her claimed
net operating losses from 1985, 1986, and 1987 to her 1988, 1989,
and 1990 tax years.8 Respondent is sustained on this issue.
7
The record reflects that petitioner reported $17,774 in
adjusted gross income and $7,751 in taxable income for 1982 and
$10,362 in adjusted gross income and $4,022 in taxable income for
1983. The record does not reflect petitioner's income for 1984.
8
Petitioner argues, in the alternative, that she should be
allowed to carry back her claimed losses for 1985, 1986, and 1987
to her 1982, 1983, and 1984 tax years; however, these tax years
are not presently within the jurisdiction of this Court. Thus,
the Court is unable to consider such an argument in this case.
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