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In this case, petitioner’s 1996 tax return is insufficient
to substantiate that petitioner incurred an NOL in 1996.
Petitioner’s tax return only sets forth petitioner’s claimed NOL
and does not establish petitioner’s entitlement thereto. Roberts
v. Commissioner, 62 T.C. 834, 837 (1974).
Also, even if petitioner had substantiated that he incurred
in 1996 an NOL, petitioner did not file an election to forgo the
carryback thereof to prior years. Petitioner was required to
carryback any 1996 NOL to 1993, 1994, and 1995 before carrying it
forward to 1997. If petitioner had carried back the $25,990
claimed 1996 NOL into 1993, 1994, and 1995, the entire NOL would
have been absorbed, and no carryforward into 1997 would be
available.
Capital Loss Carryover -- $206,881
Generally, a taxpayer’s capital losses and capital gains in
a year offset each other, and any excess capital losses, up to
$3,000 are allowed as a capital loss deduction in the current
year. Any excess may be carried forward to succeeding years.
Sec. 1212(b)(1)(A) and (B); sec. 1211(b).
Petitioner did not introduce any evidence to indicate, let
alone to substantiate, the year in which the claimed $206,881
capital loss carryover originated, the circumstances which
produced the claimed capital loss, or the amount of the capital
loss. Petitioner’s only effort to substantiate the claimed
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