- 39 -
Petitioner therefore received taxable income in the amounts
of $255,500 in 199317 and $5,391.94 in 1994, for distributions
from the trust account to him (or for his benefit).
NOL Issues
Section 172(a) allows as a deduction for a taxable year the
aggregate of NOL carryovers and carrybacks to that year. For the
years before the Court, an NOL must be carried back to each of
the 3 years preceding the taxable year of loss and carried over
to each of the 15 years following the year of such loss. Sec.
172(b)(1)(A). The entire amount of the NOL must first be carried
to the earliest eligible carryback year. Thereafter, the excess
(if any) of the NOL over the taxable income for each of the prior
taxable years to which such loss was carried must be carried to
each of the succeeding years. Sec. 172(b)(2); sec. 1.172-4(a)(3)
and (b), Income Tax Regs. A taxpayer may, however, elect to
relinquish the carryback period. The election must be made, in a
prescribed manner, by the due date (including extensions) for
filing the taxpayer’s return for the NOL year in which the
election is to be in effect. Sec. 172(b)(3).
Petitioner reported an NOL carryover of $148,367 on his 1992
individual return. The carryover consisted of losses carried
forward from 1990 and 1991. Petitioner combined the NOL
17Consisting of the $250,000 paid to petitioner and $5,500
paid to Max Binswenger on petitioner’s behalf.
Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 NextLast modified: May 25, 2011