- 36 -
978-426; Graham v. Commissioner, T.C. Memo. 1995-114; Jones v.
Commissioner, T.C. Memo. 1993-358.
Consistent with Merlo v. Commissioner, supra, we conclude
petitioners may not carry back their AMT capital losses to reduce
their AMTI in 2000. See Spitz v. Commissioner, T.C. Memo. 2006-
168.
VI. Whether Petitioners May Carry Back Net Operating Losses and
Alternative Tax Net Operating Losses To Reduce Their AMTI for
2000
In a further attempt to carry back their AMT capital losses,
petitioners assert their AMT capital losses entitle them to an
ATNOL deduction under section 56. This, too, is an argument the
Court rejected in Merlo v. Commissioner, supra.
A taxpayer normally may carry back a net operating loss
(NOL) to the 2 taxable years preceding the loss, then forward to
each of the 20 taxable years following the loss.16 Sec.
172(b)(1)(A). Section 172(c) defines an NOL as “the excess of
the deductions allowed by this chapter over the gross income”, as
modified under section 172(d). In the case of a noncorporate
taxpayer, the amount deductible on account of capital losses
shall not exceed the amount includable on account of capital
gains. Sec. 172(d)(2)(A); sec. 1.172-3(a)(2), Income Tax Regs.
16 In the case of NOLs incurred in 2001 or 2002, sec.
172(b)(1)(H) creates a 5-year carryback. Petitioners argue they
are entitled to relief from the 5-year carryback. However,
because we conclude infra that petitioners are not entitled to an
ATNOL, petitioners’ argument is moot.
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