Frank H. and Marla C. Black - Page 37




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          audit or disallow a loss claimed on a return for one year does              
          not estop respondent from disallowing an NOL carryover of that              
          loss to a future year.  Rollert Residuary Trust v. Commissioner,            
          80 T.C. 619, 636 (1983), affd. on another issue 752 F.2d 1128               
          (6th Cir. 1985).  Petitioners have failed to substantiate the               
          existence or amount of any NOL carryover deduction for the                  
          taxable years 1991 and 1992.                                                
               Under section 1211(b), noncorporate taxpayers are allowed              
          capital losses only to the extent of capital gains plus $3,000.             
          Section 1212(b) allows noncorporate taxpayers to carry forward              
          capital losses to subsequent taxable years, but it does not allow           
          such taxpayers to carry back capital losses to prior taxable                
          years.                                                                      
               In the notice of deficiency, respondent disallowed capital             
          loss deductions for petitioners’ taxable years 1991 and 1992 of             
          $3,000 and $2,721, respectively.  Petitioners advance essentially           
          the same estoppel argument as with the NOL carryover.                       
          Petitioners, however, claim the capital losses carried over to              
          1991 and 1992 arose in taxable years 1981 through 1983 and that             
          deductions of those losses were subsequently allowed in the                 
          audited years 1987 through 1989.  Petitioners argue that by                 
          allowing the loss in the audited years, respondent has conceded             
          the full capital loss carryover amount shown on the returns for             
          1991 and 1992.                                                              







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