Oren L. Benton - Page 10

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               carryforward).  Sec. 1398(g).  In the case of NOLs, the                
               bankruptcy estate succeeds to the NOLs as determined                   
               under section 172, as of the first day of the                          
               individual debtor’s taxable year in which the case                     
               commences.  Sec. 1398(g)(1).  The NOLs as determined by                
               a calendar year individual debtor, as of January 1 of                  
               the year the debtor files a bankruptcy petition, go to                 
               the bankruptcy estate for its exclusive use for the                    
               benefit of the creditors on the commencement date.  Id.                
               The individual debtor then succeeds to and takes into                  
               account the NOLs of the bankruptcy estate at the                       
               termination of the bankruptcy case.  Sec. 1398(i).                     
               * * * [Lassiter v. Commissioner, T.C. Memo. 2002-25.]                  
          III.  Termination for Purposes of Section 1398(i)                           
               Petitioner seeks to use tax losses from his bankruptcy                 
          estate.  Section 1398(i) provides for the circumstances under               
          which such tax attributes become available to the debtor/                   
          taxpayer.  Section 1398(i) provides:                                        
                    SEC. 1398(i).  Debtor Succeeds to Tax Attributes                  
               of Estate.--In the case of a termination of an estate,                 
               the debtor shall succeed to and take into account the                  
               items referred to in paragraphs (1), (2), (3), (4),                    
               (5), and (6) of subsection (g) in a manner similar to                  
               that provided in such paragraphs (but taking into                      
               account that the transfer is from the estate to the                    
               debtor instead of from the debtor to the estate).  In                  
               addition, the debtor shall succeed to and take into                    
               account the other tax attributes of the estate, to the                 
               extent provided in regulations prescribed by the                       
               Secretary as necessary or appropriate to carry out the                 
               purposes of this section.  [Emphasis added.]                           
          The parties disagree about the meaning of the phrase                        
          “termination of an estate”.  Petitioner argues that the                     
          termination of his estate occurred when his plan of                         
          reorganization was confirmed.  Respondent, however, argues that             
          termination occurs only at the time when a bankruptcy court                 

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