United States Second Circuit

Respondent's determination of a tax deficiency on petitioners' 2001 federal income tax return is affirmed where: 1) the rules governing the calculation of net operating loss for regular income tax purposes also apply to the alternative tax net operating loss except where otherwise indicated; 2) sections 172(c) and (d) of the Internal Revenue Code effectively preclude net capital losses from inclusion in net operating loss, and section 1211(b) limits capital loss deductions to $3000 per year; and 3) nothing in section 56(d) of the I.R.C. alters the rules for calculating net operating losses such that petitioners may include net capital losses in the calculation of the alternative tax net operating loss.

Appellate Information

• Decided 09/29/2008
• Published 09/29/2008

Judges

Court

• United States Second Circuit

Counsel