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3. Whether, as petitioners contend, under section 706(d),
GSD’s loss for 1991 is allocated pro rata to petitioner from
January 1 to July 11, 1991, and to his bankruptcy estate and
Martha Johnston from July 12 to December 31, 1991. We hold that
none of GSD’s loss for 1991 is allocated to petitioner.
4. Whether, as petitioners contend, the bankruptcy trustee
abandoned the administration of the bankruptcy estate’s GSD
interest so that, under 11 U.S.C. section 554 (1988), the GSD
interest reverted back to petitioner as if it had not entered the
bankruptcy estate. We hold that the bankruptcy trustee did not
abandon the GSD interest.
5. Whether any of the 1991 NOL survived after the NOL was
reduced, pursuant to section 108, by the amount of cancellation
of indebtedness income excluded from gross income. We hold that
none did.
Unless otherwise provided, section references are to the
Internal Revenue Code in effect during the years in issue. Rule
references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
A. Petitioners
Petitioners were married in 1993 and lived in San Antonio,
Texas, when they filed their petition in this case. Petitioner
was married to Martha R. Johnston (Johnston) (formerly known as
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