- 28 -
Code which assigns tax consequences to a disposition. See also
Gulley v. Commissioner, T.C. Memo. 2000-190; Smith v.
Commissioner, T.C. Memo. 1995-406. As the transfer of Mr. Katz’
partnership interests to his bankruptcy estate did not constitute
a triggering event under section 706(c)(2), Mr. Katz did not
thereby experience a “change in interest” under section
706(d)(1). Section 706(d)(1) thus has no application to this
case.
4. Conclusion as to Disputed Allocation
We hold that the prepetition partnership losses were
properly reportable in their entirety by Mr. Katz’ bankruptcy
estate pursuant to sections 706(a) and 1398(e).14 We therefore
sustain respondent’s disallowance of the NOL carryovers claimed
by petitioners for tax years 1991 to 1994, to the extent those
carryovers are attributable to the prepetition partnership losses
Mr. Katz claimed on his separately filed return for 1990.
14 To the extent not discussed in this opinion, we find
petitioners’ arguments in favor of a contrary holding to lack
merit.
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011