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That issue turns on the interpretation of section
382(l)(3)(A)(i), a matter of first impression for this Court.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for 1998, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
For the sake of convenience, all percentages are rounded to the
nearest full percent.
FINDINGS OF FACT
The parties submitted this case fully stipulated pursuant to
Rule 122. The stipulation of facts, stipulation of settled
issues, and accompanying exhibits are incorporated herein by this
reference. At the time the petition was filed, petitioner’s
mailing address was in Lafayette, Louisiana.
At the time of petitioner’s incorporation in December 1982,
Charles M. Garber, Sr. (Charles), and his brother, Kenneth R.
Garber, Sr. (Kenneth) (collectively, sometimes, the Garber
brothers), owned 68 percent and 26 percent, respectively, of
petitioner’s common stock. The spouses, children, and other
siblings of the Garber brothers owned the remaining shares of
1(...continued)
limitation applies to petitioner’s 1998 net operating loss (NOL)
deduction, there is a deficiency in petitioner’s income tax for
that year in the amount of $311,188, and (2) if the sec. 382
limitation does not apply to petitioner’s 1998 NOL deduction,
there is a deficiency in petitioner’s income tax for that year in
the amount of $5,070.
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