Oren L. Benton - Page 1

                                   122 T.C. No. 20                                    

                               UNITED STATES TAX COURT                                

                            OREN L. BENTON, Petitioner v.                             
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 7602-02.              Filed May 12, 2004.                   

                    P’s ch. 11 bankruptcy commenced in 1995, and he                   
               was discharged upon the confirmation of his plan of                    
               reorganization during 1997.  Effectively, at the time                  
               of confirmation, all of the estate’s assets were                       
               transferred to a liquidating trust for the benefit of                  
               creditors.  P had net operating losses (NOLs) that                     
               arose in years prior to the bankruptcy commencement.                   
               P’s bankruptcy estate also incurred tax losses.  The                   
               bankruptcy estate succeeded to P’s precommencement                     
               NOLs.  Under sec. 1398(i), I.R.C., P would succeed to                  
               the tax attributes (NOLs) of the bankruptcy estate,                    
               upon its termination.  P contends that his ch. 11                      
               bankruptcy terminated upon the confirmation of the plan                
               and the discharge of the debtor.  R contends that a ch.                
               11 bankruptcy does not terminate until closed by a                     
               final order of a bankruptcy court.                                     

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