Oren L. Benton - Page 28

                                       - 28 -                                         
          that concept does not extend beyond the debtor and the bankruptcy           
          estate.  In the setting of this chapter 11 bankruptcy, gains and            
          losses of the debtor and/or the estate would vest with the                  
          appropriate party if “termination” occurred at the time of                  
               We hold that the concept of closing an estate, as used in              
          section 346 of the Bankruptcy Code, is not identical for all                
          purposes to the phrase “termination of an estate” as used in                
          section 1398.  To the extent that the rationale or holding of               
          McGuirl v. Commissioner, T.C. Memo. 1999-21, or Beery v.                    
          Commissioner, T.C. Memo. 1996-464, indicates otherwise, it is               
          IV.  Petitioner’s Use of the Net Operating Losses                           
               Having decided that the tax attributes of the bankruptcy               
          estate transferred to petitioner upon the confirmation of the               
          plan of reorganization, we now address the parties’ disagreement            
          over which, if any, net operating losses (NOLs) are available to            
          petitioner and the years to which they may be carried.  In this             
          motion for partial summary judgment, the parties are focused on             
          generalized threshold legal questions.10  Those questions concern           
          whether petitioner may apply losses acquired from his bankruptcy            
          estate upon its termination against his nonbankruptcy income                

               10 The parties have not addressed the specifics of the                 
          losses, such as the amounts available and the mechanics of                  
          application under sec. 172.                                                 

Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011