- 37 -
deduction.41 Petitioner’s deduction was based on alleged losses
in 1990 and 1992.
According to respondent, the adjustments reflected in the
notice of deficiency, many of which have been conceded by
petitioner, disclose that petitioner’s income in 1990 and 1992
was in amounts sufficient to absorb the claimed net operating
loss carryforward. Thus, petitioner would not be entitled to a
net operating loss deduction in 1993.
The loss reported by petitioner for 1990 principally
involved a flow-through loss from Farm & Grove. Petitioner
reported an $82,892 loss from Farm & Grove in 1990. After
accounting for issues conceded by the parties, issues considered
conceded under Rule 34(b)(4), and the fact that we sustained one
of respondent’s determinations regarding the sale of lots to
Kiddies-CKE 38 partnership, petitioner’s distributive share of
income from Farm & Grove in 1990 is $104,636, not an $82,892 loss
as reported.42
The loss reported by petitioner for 1992 also principally
involved a flow-through loss from Farm & Grove. Petitioner
reported a $104,675 loss from Farm & Grove in 1992 but concedes
41A net operating loss deduction is the excess of allowable
deductions over gross income, computed under the law in effect
for the loss year, with the required adjustments. Sec. 172(c)
and (d).
42See appendix D.
Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 NextLast modified: May 25, 2011