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local income taxes. Petitioner is not entitled to deduct the
claimed $13,853 in State and local income taxes in excess of the
$3,532 allowed by respondent.
Net Operating Loss Carryforward -- $25,990
Section 172 allows an NOL deduction to a taxpayer equal to
the total of the NOL carryforwards and carrybacks to the year.
Sec. 172(a). Absent an election to the contrary, NOLs are to be
carried back to the 3 prior years, and then, if not fully
absorbed, are to be carried forward to subsequent years up to a
maximum of 15 years. Sec. 172(b)(1)(A), (2), and (3).1
Taxpayers bear the burden of establishing both the existence
and amount of NOL carrybacks and carryforwards. Rule 142(a);
Keith v. Commissioner, 115 T.C. 605, 621 (2000); Jones v.
Commissioner, 25 T.C. 1100, 1104 (1956), revd. and remanded on
other grounds 259 F.2d 300 (5th Cir. 1958).
We may consider facts relating to years not in issue that
are relevant to the claimed NOLs. Sec. 6214(b).
The only evidence petitioner has presented with regard to
the $25,990 claimed 1996 NOL carryforward is his 1996 individual
Federal income tax return.
1For tax years beginning on or after Aug. 5, 1997, net
operating losses are to be carried back 2 years and then carried
forward up to a maximum of 20 years. Taxpayer Relief Act of
1997, Pub. L. 105-34, sec. 1082(a)(1), 111 Stat. 950.
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