Oren L. Benton - Page 39

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          considerations, or precedents in support of the comments or                 
          conclusions reached.19  Accordingly, we place no reliance on                
          these extraneous offerings.                                                 
               We therefore hold that petitioner is entitled to carry                 
          forward losses inherited from the bankruptcy estate and those to            
          which the debtor was already entitled in accord with section 172            
          and the underlying regulations.  Those losses may be applied, in            
          accord with the provisions of section 172, for the year of the              
          commencement of the bankruptcy and later years.                             
          V.  CBM and Bankruptcy Estate Payments to Petitioner                        
               Petitioner argues that the more than $2 million in payments            
          received from CBM were dividends or profits to the Benton estate            
          on account of its ownership of shares in CBM.  Petitioner further           
          asserts that the payments from CBM and a $25,000 payment he                 
          received from the Benton estate constituted loans to him from the           
          Benton estate.  Finally, petitioner contends that the loans were            
          discharged as part of the plan and nontaxable to him pursuant to            
          section 108(a)(1)(A).                                                       
               Respondent argues that petitioner received the payments from           
          CBM and the Benton estate as compensation under a claim of right            
          without restriction as to disposition.                                      

               19 McQueen & Williams, Tax Aspects of Bankruptcy Law and               
          Practice, sec. 18-23 (2d ed. 1995); Newton & Bloom, Bankruptcy              
          and Insolvency Taxation, sec. 2.16 (John Wiley & Sons, 1991);               
          Tatlock, Discharge of Indebtedness, Bankruptcy, and Insolvency,             
          540-2d Tax Mgmt. (BNA), at A-37 (2003).                                     

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