Melvin D. Lee - Page 8

                                        - 8 -                                         
               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                  

          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                 

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011