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that Exodus could have compelled petitioner to forfeit his shares
of stock.
In consequence of the foregoing, we hold that petitioner’s
rights to his shares of Exodus stock were not subject to a
substantial risk of forfeiture. We therefore shall grant
respondent’s motion for partial summary judgment.
Petitioner also alleges that he is entitled to an ATNOL
deduction under section 56(d). An ATNOL deduction is the net
operating loss deduction allowable for the taxable year under
section 172 and is computed by taking into consideration all the
adjustments to taxable income under sections 56 and 58 and all
the preference items under section 57 (but only to the extent
that the items increased the net operating loss for the year for
regular tax purposes). Sec. 56(d)(1). Section 172 defines the
net operating loss as “the excess of the deductions allowed by
this chapter over the gross income.” Sec. 172(c). In the case
of a noncorporate taxpayer, the amount deductible on account of
losses from sales or exchanges of capital assets shall not exceed
the amount includable on account of gains from sales or exchanges
of capital assets. Sec. 172(d)(2)(A). In addition, where
deductions are not attributable to the taxpayer’s trade or
business, the deductions generally will be allowed only to the
extent of the amount of the gross income not derived from the
taxpayer’s trade or business. Sec. 172(d)(4).
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