Oren L. Benton - Page 32

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          losses to prepetition taxable years.12  We note that section                
          1398(j)(2)(B) applies with respect to “any carryback from a                 
          taxable year ending after the case commences.”  The use of the              
          all-inclusive adjective “any” in section 1398(j)(2)(B) would be             
          inclusive of the estate’s NOLs that are succeeded to by the                 
          debtor.  Accordingly, section 1398(j)(2)(B) prohibits only                  
          carrybacks to precommencement years and does not place any                  
          limitation on postcommencement years.13                                     
               The use of the bankruptcy commencement date in section                 
          1398(j)(2)(B), to demarcate the earliest year to which a loss may           
          be carried back as well as the earliest year from which such a              
          loss may emanate, appears to favor petitioner’s position that he            
          may carry forward the NOLs received from the bankruptcy estate to           
          postcommencement years (1995 and forward).  The purpose of                  
          section 1398 is achieved during the bankruptcy by causing the               
          estate to be responsible for income attributable to assets which            
          are part of the bankruptcy estate.  In that regard, the debtor is           

               12 No reference is made in sec. 1398(j)(2)(B) to the                   
          carryback of precommencement NOLs to precommencement years.                 
          Whether such a carryback is permitted is not a matter that need             
          be decided with respect to the factual circumstances presented in           
          this case.                                                                  
               13 We recognize that sec. 1398(g)(1) uses the word                     
          “carryovers” in describing the attributes to which the debtor may           
          succeed, but the operative language, as discussed above,                    
          indicates that the use of the word “carryovers” was not intended            
          as a limitation.  Rather, the word “carryovers” appears to                  
          reference the movement of the attribute from the estate to the              

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