- 11 - $1,459,349 for that period and allocated $972,899 of that loss to petitioner. Petitioners contend that they may carry half of the 1991 NOL forward to 1993 and 1994 under any of several theories: (1) The 1991 NOL passed through GSD to its general partner (petitioner) on July 11, 1991, when (according to petitioners) GSD terminated; (2) GSD’s tax year closed as to petitioner under section 706(c)(2) on July 11, 1991, causing the partnership’s tax items, such as the accrued interest on the Sunbelt note, to pass through to petitioner on that date; (3) GSD’s 1991 partnership loss for the period January 1 to July 11, 1991, should be prorated to petitioner under section 706(d); and (4) petitioner’s interest in GSD reverts to him because the bankruptcy trustee abandoned the partnership interest under 11 U.S.C. section 554. Petitioners also contend that petitioner’s share of the 1991 NOL was not extinguished by the amount of cancellation of indebtedness income excluded from gross income under section 108. A. Whether the GSD Partnership Terminated on July 11, 1991 1. Whether GSD Terminated on July 11, 1991, Under Section 708(b)(1)(A) Petitioners contend that GSD terminated on July 11, 1991, when petitioner filed his petition in bankruptcy. Petitioners also argue that GSD terminated because it carried on no businessPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011