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stock or qualifying debt with respect to her ownership of T.G.
Morgan, Inc., petitioner may not deduct any portion of a net
operating loss of that corporation.
Even if petitioner could deduct a portion of the loss, the
amount of her loss has not been established. T.G. Morgan, Inc.
reported a loss in 1992 of $17,202. If that amount is correct,
petitioner’s share of that loss, 27.5 percent, would be
$4,730.55. Sec. 1366(a)(1). Yet, petitioner presented neither
evidence of the transactions giving rise to the claimed loss nor
evidence of how much of that loss was absorbed in prior years.
Bohannon v. Commissioner, T.C. Memo. 1997-153 (NOL carryforwards
denied to taxpayer who failed to show that the losses had not
been absorbed in prior years).
Petitioner claimed that the income tax returns filed by the
bankruptcy trustee on behalf of T.G. Morgan, Inc., were false.
However, no evidence was presented to establish that any action
was instituted in the bankruptcy court to compel a correction of
the income tax returns filed by the trustee. Moreover, as noted
earlier, petitioner’s claimed loss on her return is not based on
the Schedule K-1, which was issued to her by the bankruptcy
trustee (and which reflected a loss of $17,202 of the business),
but instead is based on a proof of claim in the amount of
$38,046,524 filed by the FTC as a creditor in the T.G. Morgan,
Inc., bankruptcy proceeding. The record of this case does not
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