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1996); McGuril v. Commissioner, T.C. Memo. 1999-21; Beery v.
Commissioner, T.C. Memo. 1996-464, we hold that he was not
entitled to claim personally in the subject years a deduction for
an NOL that arose prior to the estate’s commencement; see sec.
1398(g); see also Kahle v. Commissioner, T.C. Memo. 1997-
91.(NOL’s determined as of the first day of the debtor's taxable
year in which the bankruptcy case commences become part of the
estate and no longer belong to the debtor-taxpayer).
3. Income Items
Items of gross income realized from the assets of a
bankruptcy estate after the commencement of a bankruptcy action
are generally included in the gross income of the bankruptcy
estate rather than the gross income of the debtor. See sec.
1398(e)(1) and (2).
Petitioner’s 1988 individual income tax return shows a net
profit of $62,304 from the “Sales - subdivision lots French
Hills”. The Frenchtown Hills subdivision was part of the estate
in 1988, and the related sales income was includable in the
estate’s gross income. We understand Mr. Roberts to have
reported that sales income on the estate’s 1988 fiduciary return.
Accordingly, the $62,304 is excluded from petitioner’s gross
income for 1988.
Petitioner also seeks to exclude the following sums of
interest income: $6,126 (unreported), $5,847 (reported), and
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