Michael H. Gulley and Paula M. Gulley - Page 20




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          section 108(a).  See also Firsdon v. United States, 95 F.3d 444                
          (6th Cir. 1996).  Petitioners’ claim that Firsdon does not apply               
          in the instant case because it did not address the election under              
          section 1398(d)(2) is without merit for the reasons stated above.              
               Respondent’s determinations in the notices of deficiency are              
          presumed to be correct, and petitioners bear the burden of                     
          proving otherwise.  Rule 142(a); Welch v. Helvering, 290 U.S.                  
          111, 115 (1933).  Petitioner listed on his bankruptcy schedules                
          liabilities totaling $60.5 million, which greatly exceeds half of              
          the 1991 NOL.  Petitioners have not shown that any part of the                 
          1991 NOL remained after the section 108 reduction.                             
               Accordingly,                                                              

                                                    Decision will be entered             
                                               for respondent.                           























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