- 39 -
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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