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as a matter of law. See Rule 121(b); Sundstrand Corp. v.
Commissioner, 98 T.C. 518, 520 (1992), affd. 17 F.3d 965 (7th
Cir. 1994). As there exists no factual dispute pertaining to the
disputed allocation, we shall address the legal issue before us.
Gross income of a bankruptcy estate is defined as the gross
income of the debtor to which the estate is entitled pursuant to
the U.S. Bankruptcy Code. See sec. 1398(e)(1). Under bankruptcy
law, the bankruptcy estate is entitled to the income generated by
property of the estate, see 11 U.S.C. sec. 541(a)(6), and a
debtor’s partnership interest becomes property of the estate upon
the filing of the bankruptcy petition, see id. sec. 541(a)(1).
Gross income of the estate, however, does not include amounts
received or accrued by the debtor prior to the commencement of
the bankruptcy proceeding. See sec. 1398(e)(1). Gross income of
the debtor is that which remains after excluding those items
which are included in gross income of the estate. See sec.
1398(e)(2).
With section 1398 in mind, we turn to the relevant
provisions governing the income taxation of partners and
partnerships. A partner must include in gross income his share
of income, gain, loss, deduction, or credit for any taxable year
of the partnership ending with or within the partner’s taxable
year. See sec. 706(a); see also sec. 1.706-1(a)(1), Income Tax
Regs. The critical date under this provision is the last day of
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