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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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