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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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