Oren L. Benton - Page 24

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          in more than one place in the same statutory section, the term or           
          phrase should have the same meaning.  See Venture Funding v.                
          Commissioner, 110 T.C. 236, 250 (1998).                                     
               The phrase “termination of the estate” in section 1398(f)(2)           
          has been considered in the context of a chapter 7 liquidating               
          bankruptcy.  Section 1398(f)(2) provides:                                   
               In the case of a termination of the estate, a transfer                 
               (other than by sale or exchange) of an asset from the                  
               estate to the debtor shall not be treated as a                         
               disposition for purposes of any provision of this title                
               assigning tax consequences to a disposition, and the                   
               debtor shall be treated as the estate would be treated                 
               with respect to such asset.                                            
               The bankruptcy court analyzed whether abandonment of assets            
          of a bankruptcy estate by the trustee triggers tax consequences             
          to the estate in In re McGowan, 95 Bankr. 104 (Bankr. N.D. Iowa             
          1988).  The bankruptcy trustee and the debtor argued that the               
          trustee’s abandonment of the property was a disposition for tax             
          purposes and that the tax liability arising from the disposition            
          was the obligation of the estate or the trustee.  The trustee and           
          the debtor stood to gain by their argument because there were no            
          assets in the estate and the parties agreed that the trustee                
          would not be personally liable for the taxes of the estate.  The            
          Internal Revenue Service and the State of Iowa argued that the              
          abandonment of the assets was a “transfer” of assets from the               
          bankruptcy estate to the debtor pursuant to section 1398(f)(2),             
          and therefore the estate would not have any tax consequences                

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