§108 — Income from discharge of indebtedness

Nevertheless, relying upon an inapplicable regulation and precedent from a case superseded by the enactment of section 108(a)(1)(B),4 respondent argues that "in order to qualify for the insolvency exception, the taxpayer must be insolvent both immediately before and immediately after the discharge of indebtedness ." Respondent points out that petitioners have failed to establish that they w

We find that the exception of section 108 does not apply and Ward must include the discharge of indebtedness in income for both her 2012 and 2013 tax years.

Additionally, unlike unrecognized gain, excluded discharge ofindebtedness income may affect the tax liability ofS corporation shareholders. Section 108(b)(1) specifies that the amount ofdischarge ofindebtedness income excluded from gross income is applied to reduce the tax attributes ofthe taxpayer.

However, we find the citation to be inapposite.

Any such arrangement was not documented, and we are not convinced that they ever agreed to it.

See, e.g., United States s For the same reason, we also need not decide whether Brooks should have reported discharge-of-indebtedness income each year that part of the loan was forgiven.

We disagree with Mr.

We disagree with petitioner's argument for the following reasons.

This means section 108 applies only when there's COI income under section 61(a)(12).

Even ifthe income received by petitioners were discharge ofindebtedness income, petitioners have not allegedthat any exception under section 108 applies to exclude the amount from gross income.

108 provides that income received from the discharge ofindebtedness may be excludable from a taxpayer's gross income under certain circumstances.

Therefore, we hold that the information provided by respondent concerning the information return is sufficient to satisfy his burden ofproduction under section 6201(d).

Section 108 provides certain exceptions to section 61(a)(12).

Section 108 provides for.

Therefore, we hold that respondent's determination is correct in that petitioners had at least $11,044 of cancellation of debt income .

Consequently, we hold that the discharge of indebtedness income, as determined by respondent, is includable in petitioners' gross income for 2003 .

Section 108 provides certain exceptions to this general rule .

tributions from ECC upon - 3 - liquidation. Petitioner's ECC common stock became worthless during 1990. In completing its 1990 Form 1120S, U.S. Income Tax Return for an S Corporation, ECC properly excluded the COD income from its income pursuant to section 108. On petitioner's Schedule K-1 (Form 1120S), Shareholder's Share of Income, Credits, Deductions, Etc., ECC separately stated the COD income and reported petitioner's pro rata share in the amount of $612,245. Petitioner increased his basis i

We find that the exception of section 108 does not apply and Ward must include the discharge of indebtedness in income for both her 2012 and 2013 tax years.

Moreover, Congress believed "that where, as in the case ofthe present statute under section 108, the plain text ofa provision ofthe Internal Revenue Code produces an ambiguity, the provision should be read as closing, not maintaining, a loophole that would result in an inappropriate reduction oftax liability." Id.

Moreover, Congress believed "that where, as in the case ofthe present statute under section 108, the plain text ofa provision ofthe Internal Revenue Code produces an ambiguity, the provision should be read as closing, not maintaining, a loophole that would result in an inappropriate reduction oftax liability." Id.

Moreover, Congress believed "that where, as in the case ofthe present statute under section 108, the plain text ofa provision ofthe Internal Revenue Code produces an ambiguity, the provision should be read as closing, not maintaining, a loophole that would result in an inappropriate reduction oftax liability." Id.

Moreover, Congress believed "that where, as in the case ofthe present statute under section 108, the plain text ofa provision ofthe Internal Revenue Code produces an ambiguity, the provision should be read as closing, not maintaining, a loophole that would result in an inappropriate reduction oftax liability." Id.

Congress carved out an exception in section 108(f)(1) to the requirement in section 61(a)(12) that income from the discharge of indebtedness must be included in gross income. Congress carefully prescribed the requirements that must be satisfied in order to have the exception in section 108(f)(1) apply to income from the discharge of a student loan. Exclusions from income must be narrowly construed. Commissioner v. Schleier, 515 U.S. 323, 328 (1995). Petitioner’s LARP award of $4,372 does not sat

We note section 108(e)(1) provides that, “there shall be no insolvency exception from the general rule that gross income includes income from the discharge of indebtedness” except as provided in section 108, eliminating any judicially created exceptions to the general rule of income from discharge of indebtedness.

The Board distinguished Dallas Transfer & Terminal Warehouse Co. v. Commissioner, supra, from the facts before it and concluded that the rationale of United States v. Kirby Lumber Co., 284 U.S. 1 (1931), was applicable to those facts. See Lakeland Grocery Co. v. Commissioner, supra at 291-292. The Board held that the taxpayer realized gain to the extent of the value of the assets freed from the claims of its creditors, i.e., to the extent it had assets (i.e., $39,597) which ceased to be offset b

DOI Income — Section 108 Section 61(a) defines the term “gross income” broadly to mean all income from whatever source derived, including income from discharge of indebtedness.

Whether any of the 1991 NOL survived after the NOL was reduced, pursuant to section 108, by the amount of cancellation of indebtedness income excluded from gross income.

income is not tax- - 4 - exempt, (2) Congress' intent to treat all shareholders in S corporations similarly under section 108(d)(7), and (3) the dissimilarity in treatment between section 103 (exclusion of State bond interest from gross income) and section 108. We disagree with petitioners. In Nelson, we addressed all of these arguments in detail. Nelson v. Commissioner, supra at 122-125. We shall follow our recent Court-reviewed opinion. We therefore conclude that petitioners may not increase t

We held in that case that section 108 is not designed or intended to be a permanent exemption from tax.

We held in that case that section 108 is not designed or intended to be a permanent exemption from tax.

Therefore, we examine the juxtaposition of the subchapter S provisions and section 108 to determine whether an S corporation shareholder’s basis in stock may be increased by the amount of COD income derived by the insolvent corporation.

Section 108 contains no definition of the term “liabilities”, nor does the Code contain any generally applicable definition of that term. The regulations interpreting section 108 neither add to the statutory definition of insolvency nor define the term “liabilities”. Section 108(e)(1) states that, except as provided in section 108, “there shall be

Petitioner contends, however, that section 108 requires exclusion of the gain from gross income.

Section 108 contains no definition of the term “liabilities”, nor does the Code contain any generally applicable definition of that term. The regulations interpreting section 108 neither add to the statutory definition of insolvency nor define the term “liabilities”. Section 108(e)(1) states that, except as provided in section 108, “there shall be

Section 108 contains no definition of the term “liabilities”, nor does the Code contain any generally applicable definition of that term. The regulations interpreting section 108 neither add to the statutory definition of insolvency nor define the term “liabilities”. Section 108(e)(1) states that, except as provided in section 108, “there shall be

While it is possible for the setoffofa debt to result in income either as a form ofa payment due or discharge ofindebtedness income under section 108, see OKC Corp.

For purposes of section 108, “insolvent” means the excess of liabilities over the fair market value of assets.

For purposes of section 108, “insolvent” means the excess of liabilities over the fair market value of assets.

g real estate. In 1993, Narwhal was forced to surrender most of its real estate holdings through foreclosure. As a result, Narwhal realized COD income of $3,321,471. Because Narwhal was insolvent, the COD income was treated as nontaxable pursuant to section 108. For 1993, Narwhal had ordinary losses of $2,586,238. Narwhal issued petitioner a Schedule K-1 for 1993, reflecting his distributive share of Narwhal’s COD income ($1,107,155) and ordinary losses ($862,078). Petitioner increased the basis

cludes income from discharge of indebtedness. Sec. 61(a)(12). However, section 108(a) provides an exclusion if the discharge of indebtedness occurs when the taxpayer is insolvent. Strong Hope contends that it comes within the insolvency exclusion of section 108. We do not agree. -33- Strong Hope had assets of $1,173,122 and liabilities of $916,991 prior to its distribution of the Stockton Street property. The Stockton Street property was valued at $1.1 million, and according to Strong Hope's boo

cludes income from discharge of indebtedness. Sec. 61(a)(12). However, section 108(a) provides an exclusion if the discharge of indebtedness occurs when the taxpayer is insolvent. Strong Hope contends that it comes within the insolvency exclusion of section 108. We do not agree. -33- Strong Hope had assets of $1,173,122 and liabilities of $916,991 prior to its distribution of the Stockton Street property. The Stockton Street property was valued at $1.1 million, and according to Strong Hope's boo

follows: This return omits receipt of Income (Form 1099 from Colonial National Bank in the amount of $886,069.00). 1989 [sic] under Code Section 108(a)(1), and as applicable, Sections 1017(a) (1); 1017(2)(2) [sic], subsection (b)(2)(D) or (b)(5) of Section 108. The notice of deficiency issued to petitioners in this case states as follows: It is determined that since your income tax return for the tax year 1989 was not filed within the time prescribed by law and you have not shown that the failu

- 27 - For purposes ofsection 108, "qualified principal residence indebtedness" has the same meaning as "acquisition indebtedness" in section 163(h)(3)(B).

'Section 108 contains an exception. On the basis ofthe Form 982 attached to petitioner's 2006 Form 1040, it appears he is arguing that section 108(a)(1)(E) and (h) applies and thatthe cancellation ofindebtedness income is excluded from income. Section 108(a)(1)(E) currently provides: "Gross income does not include any amount which * * * would be inc

ers; 2) proven that any allowable NOL carryo(cid:16)040erdsid not expire either before or during the taxable years - 40 - in question; or, 3) shown that the carryovers were not reduced by any cancellation ofindebtedness income exclusions under Code section 108." As described supra section I.A.2.a.(1)(b) ofthis report, the filing ofan individual's voluntary petition in a chapter 11 bankruptcy creates a new taxable entity (the bankruptcy estate) for Federal tax purposes, separate from the individu

Section 108, a provides in relevant part that a taxpayer may exclude income from r~E the discharge of indebtedness if the discharge occurs in a bankruptcy case °or when the. taxpayer is insolvent . Petitioner has not shown that he qualifies for any of th e exceptions in section 108(a) . Petitioner does not dispute the ; amount of his debt to Provid

leased from indebtedness, he or she realizes an accession to income due to the freeing of assets previously offset by the liability. See United States v. Kirby Lumber Co., 284 U.S. 1, 3 (1931). Statutory exceptions to the above rule are set forth in section 108. Section 108(a) excludes from the operation of section 61(a) indebtedness (1) which is discharged in a title 11 case, (2) which is discharged when the taxpayer is insolvent, (3) 3 The Forms W-2, Wage and Tax Statement, indicate that petit

The issue for decision is whether the resulting discharge of indebtedness income is excludable from petitioners’ 1995 gross income pursuant to section 108.1 We hold that it is.2 Background The parties submitted this case fully stipulated pursuant to Rule 122.

The issue for decision - 2 - is whether the resulting discharge of indebtedness income is excludable from gross income pursuant to section 108.1 We hold that it is.2 Background The parties submitted this case fully stipulated pursuant to Rule 122.

The issue for - 2 - decision is whether the resulting discharge of indebtedness income is excludable from gross income pursuant to section 108.1 We hold that it is.2 Background The parties submitted this case fully stipulated pursuant to Rule 122.

The issue for decision is whether the resulting discharge of indebtedness income is excludable from gross income pursuant to section 108.1 We hold that it is.2 Background The parties submitted this case fully stipulated pursuant to Rule 122.

This was based on the assumption that at the time of delivery of the deed by the LLC, the LLC would be insolvent for purposes of section 108, so that most of the gain realized on the Fitch Property transaction would be treated as cancellation of indebtedness income and therefore not taxable.

The exclusions provided in section 108 do not apply in this case because the evidence does not establish that petitioners were insolvent.

Respondent does not dispute, for purposes of the section 108 (a) (1) (C) exclusion, (1) that the FmHA is a qualified person, see sec.

After concessions, the sole issue for decision is whether discharge of indebtedness income that is excluded, pursuant to section 108, from the gross income of an S corporation increases the bases of petitioners’ S corporation stock.

After concessions, the sole issue for decision is whether discharge of - 2 - indebtedness income that is excluded, pursuant to section 108, from the gross income of an S corporation increases the basis of petitioner's S corporation stock.

On appeal, the Court of Appeals for the District of Columbia Circuit reversed after concluding that Congress had intended to allow the disputed losses pursuant to section 108 of the Tax Reform Act of 1984 (Division A of the Deficit Reduction Act of 1984, Pub.

After concessions, the sole issue for decision is whether discharge of indebtedness income that is excluded, pursuant to section 108, from the gross income of an S corporation increases the basis of - 2 - Mr.

Petitioners also assert that under section 108 only a small portion of the claimed NOL carryovers would be eliminated.

On appeal, the Court of Appeals for the District of Columbia Circuit reversed after concluding that Congress had intended to allow the disputed losses pursuant to section 108 of the Tax Reform Act of 1984 (Division A of the Deficit Reduction Act of 1984, Pub.

We held in that case that section 108 is not designed or intended to be a permanent exemption from tax.

6662 1992 $341,896 $68,379 - 2 - 1993 51,328 10,266 1994 32,269 6,454 After concessions,1 the issue for decision is whether certain net operating losses (NOL's) are reduced under section 108 because of discharge of indebtedness income (COD income).2 FINDINGS OF FACT Some of the facts have been stipulated and are so found.

section 108(b)(4) and section 108(d)(8). Section 108(d)(8), which specifies the estate as the taxpayer, does not specifically refer to the ordering rule of section 108(b)(4) and confines such reference to paragraphs (1) and (5) of subsection (b) of section 108. Thus, according to petitioners, the reductions under section 108(b) occur after the individual taxpayer, not the estate, determines his or her tax liability for the year of discharge pursuant to section 108(b)(4), using whatever tax attr

18, 31, restates the pre-section 108 judicially created insolvency exception.

r exception is relevant in the instant case. Petitioner was not insolvent during 1988, nor has he established any donative intent on the part of Caesar’s in settling his debt. Moreover, although there is no express abolition of the gift exception in sec. 108, the legislative history of the Bankruptcy Tax Act of 1980, Pub. L. 96-589, 94 Stat. 3389, which amended sec. 108, states, in the course of discussing provisions relating to the realization of cancellation of indebtedness income arising from

10 The parties agree that unpaid interest incurred on the (continued...) - 20 - income must be recognized by the partners of Parker Properties and Twenty Mile as a separately stated item under section 702(a)(7), subject to the limitations of section 108 at the partner level.

1963-149.110 Thus section 108 “[T]his title” referred to the Internal Revenue Code of 1954.

at 789 (“Only after it is determined that [section 61(a)(12)] applies does one reach the question of the impact of 9 [*9] insolvency and therefore the applicability of section 108.”); Danenberg, 73 T.C.

-14- form of relief was to convert the consequence of the discharge of certain indebtedness (QRPBI) from income, as would generally result under section 108, to a basis adjustment.

, 1003-1004 (9th Cir. 1999) (finding that the shareholder recognizes income from a stock sale where acquisition is "practically certain to occur", rather than the subject of"a mere anticipation or expectation", before the shareholder donates stock), § 108 T.C. 244 (1997). In Hudspeth v. United States, 471 F.2d 275, 276 (8th Cir. 1972), for example, the court recast a stock donation as a taxable stock sale and donation ofthe sale proceeds where the - 9 - [*9] taxpayer donated stock after the issu

Section 108(a)(1)(E) provides that gross income does not include amounts which would be includible as COD income if"the indebtedness discharged is qualified principal residence indebtedness".

Jackson was insolvent within the meaning ofsection 108 at the time that he realized income attributable to discharged indebtedness.2 ¹Unless otherwise indicated, all section references are to the Internal Revenue Code, as amended and in effect for the taxable year 2013, and all Rule references are to the Tax Court Rules ofPractice and Procedure.

108 excludes certain discharges from gross income. See sec. 108(a), (e)(2), (f) (excluding discharge ofindebtedness from gross income in certain cases involving, inter alia, insolvency, qualified farm indebtedness, lost deductions, and certain student loan discharges). However, petitioner did not raise any ofthese exceptions to the general COD

This is insuf- 4Ifthe CFCs truly discharged CGI from its obligation on one or more loans, that would give rise to income from discharge ofindebtedness under section 108 unless some exclusion applied.

The basis ofthe assets repossessed or abandoned in 2011 is not reduced for 2011 as tax attributes under section 108 for the exclusion ofdischarge ofindebtedness income that may have occurred in 2012.

it. See Commissioner v. - 12 - Tufts, 461 U.S. 300, 307 (1983). However, ifthe obligation to repay is forgiven or canceled by the lender, gross income may arise. See sec. 61(a)(12); United States v. Kirby Lumber Co., 284 U.S. 1, 3 (1931); see also sec. 108. In general, cancellation ofindebtedness produces income in an amount equal to the difference between the amount due on the obligation and the amount paid for the discharge. See Babin v. Commissioner, 23 F.3d 1032, 1034 (6th Cir. 1994), af[g

ation ofindebtedness provides the debtor with an economic benefit that is equivalent to income. See United States v. Kirby Lumber Co., 284 U.S. 1 (1931); Friedman v. Commissioner, 216 F.3d 537, 545 (6th Cir. 2000), afg T.C. Memo. 1998-196; see also sec. 108. The year for which a taxpayerrealizes COD income is a question offact to be determined on the basis ofthe evidence. See Policy Holders Agency, Inc. v. Commissioner, 41 T.C. 44, 47 (1963); Callan Court Co. v. Commissioner, T.C. Memo. 1965-261

"Insolvent" within the meaning ofsection 108 is defined as the excess ofa taxpayer's liabilities over the fair marketvalue of assets.

repay it. See Commissioner v. - 17 - Tufts, 461 U.S. 300, 307 (1983). However, ifthe obligation to repay is forgiven or canceled by the lender, gross income may arise. See 61(a)(12); United States v. Kirby Lumber Co., 284 U.S. 1, 3 (1931); see also sec. 108. In general, cancellation ofindebtedness produces income in an amount equal to the difference between the amount due on the obligation and the amount paid for the discharge. See Babin v. Commissioner, 23 F.3d 1032, 1034 (6th Cir. 1994), af_f'

with an economic benefit that is equivalent to income. United States v. Kirby Lumber Co., 284 U.S. at 3; see Friedman v. Commissioner, 216 F.3d 537 (6th Cir. 2000), a_fEg T.C. Memo. 1998-196; Cozzi v. Commissioner, 88 T.C. 435, 445 (1987); see also sec. 108. The question as to the year in which a taxpayerrealizes COI income is one offact to be determined on the basis ofthe evidence. See Policy Holders Agency, - 6 - Inc. v. Commissioner, 41 T.C. 44, 47 (1963); Callan Court Co. v. Commissioner, T

1099-C to Groundscape, and thus we do not address the second Form 1099-C. 3°Sec. 61(a)(12). 3'See United States v. Kirby Lumber Co., 284 U.S. 1 (1931); Friedman v. Commissioner, 216 F.3d 537, 545 (6th Cir. 2000), aff'g T.C. Memo. 1998-196; see also sec. 108. - 18 - [*18] question offact to be determined on the basis ofthe evidence.32 A debt is deemed discharged the moment it becomes clear that the debt will never be repaid.33 "Any 'identifiable event' which fixes the loss with certainty may be

For example, section 108 excludes certain discharges from gross income.

It is respondent's position in the instant proceeding that on or before April 19, 2011, the date on which the Tampa Appeals Office sent to petitioner the Tampa Appeals April 19, 2011 letter, petitioner had failed to provide that office with records and other documentation and information that established petitioner's entitlement under section 108 to exclude from her income for her taxable year 2008 petitioner's COI income in question.

ration's COD income excluded under section 108(a) is not an item ofincome to its shareholders under section 1366(a). See sec. 108(d)(7)(A).19 There is nothing in the record to suggest whether any COD income to OneStar Holding would be excluded under section 108. For the foregoing reasons, we sustain respondent's determination to disallow $585,587 ofthe NOL that was carried over to 2004. Because our findings today show that petitioners did not incur an NOL for 2004, we sustain respondent's determ

Ofthese only section 108 could possibly apply in this case.

ied that, in 2005, he settled a debt to General Motors Acceptance Corporation by paying $1,659 less than 'Sec. 108(a) excludes certain discharges of debt from gross income. For example, sec. 108(a) (1) (A) excludes discharges in a title 11 case and sec. 108 (a) (1) (:B) excludes discharges occurring when the taxpayer is insolvent. Oglesby has not alleged--and the record does not show--that sec. 108(a) excludes his discharge of debt from gross income. -15- he owed. He did not report the $1,659 on

Our final question is whether, under section 108, the cancellation of the AGI debts should be excluded from income because the Felts were insolvent at the time .

* * * Moreover, §§ 101 through 136 employ the same construction [as section 108] to exclude various items from gross income : "Gross income does not include .

* * * Moreover, §§ 101 through 136 employ the same construction [as section 108] to exclude various items from gross income : "Gross income does not include .

e, that “We really think that the issue here is the 1990 return, not the 1989 return.” Petitioners then proceeded to argue that the Schedule L to Zephyr’s Form 1120S for 1990 reflected COD income, which was not required to be “reported” because of section 108. Petitioners now argue that such COD income must be reflected in the calculation of the Roses’ basis in Zephyr. As detailed in our findings of fact, supra pp. 30-33, no direct references were made and no explanations were provided in Zephyr

Petitioners contend that respondent’s acceptance of petitioners’ amended 1994 return based on section 108 establishes that petitioners should be excused from the late payment addition for 1993.

108.829 (Michie 2001).4 We note that the Notice of Federal Tax Lien in 4 Nev. Rev. Stat. Ann. sec. 108.829 (Michie 2001) provides in pertinent part: (continued...) - 12 - question was filed on Form 668(Y) and bears a facsimile signature. Petitioner’s reliance on Nevada State law in this matter is misplaced. It is well settled that the form an

342, 346 (1995) (“whether or not the debtor partner makes the short taxable year election, the distributive share of income or loss from the entire partnership taxable year in which the partner’s bankruptcy petition is filed should be included in the return of the estate”); American Bar Association - 21 - Section of Taxation, “Report of the Section 108 Real Estate and Partnership Task Force: Part II”, 46 Tax Law.

342, 346 (1995) (“whether or not the debtor partner makes the short taxable year election, the distributive share of income or loss from the entire partnership taxable year in which the partner’s bankruptcy petition is filed should be included in the return of the estate”); American Bar Association - 21 - Section of Taxation, “Report of the Section 108 Real Estate and Partnership Task Force: Part II”, 46 Tax Law.

leased from indebtedness, he or she realizes an accession to income due to the freeing of assets previously offset by the liability. See United States v. Kirby Lumber Co., 284 U.S. 1, 3 (1931). Statutory exceptions to the above rule are set forth in section 108. Section 108(a) excludes from the operation of section 61(a) indebtedness which is discharged in a title 11 case, which is discharged when the taxpayer is insolvent, which consists of qualified farm indebtedness, or which consists of qual

342, 346 (1995) (“whether or not the debtor partner makes the short taxable year election, the distributive share of income or loss from the entire partnership taxable year in which the partner’s bankruptcy petition is filed should be included in the return of the estate”); American Bar Association - 21 - Section of Taxation, “Report of the Section 108 Real Estate and Partnership Task Force: Part II”, 46 Tax Law.

- 3 - Section 108 of the Act, Mich. Comp. Laws sec. 38.1408, provides the following: “This state intends that the retirement system be a qualified pension plan created in trust under section 401 of the internal revenue code and that the trust be an exempt organization under section 501 of the internal revenue code. * * *” Upon automatic enrollment in the

leased from indebtedness, he or she realizes an accession to income due to the freeing of assets previously offset by the liability. See United States v. Kirby Lumber Co., 284 U.S. 1, 3 (1931). Statutory exceptions to the above rule are set forth in section 108. Section 108(a) excludes from the operation of section 61(a) indebtedness which is discharged in a title 11 case, which is discharged when the taxpayer is insolvent, which consists of qualified farm indebtedness, or which consists of qual

Petitioner never requested an Appeals Office conference before the filing of his petition with the Tax Court. When Mr. Leonard was offered a conference by Appeals Officer John Mazur during a telephone conversation on September 17, 1998, the offer was declined. Instead, Mr. Leonard promised the Appeals officer - 4 - that he would provide

Section 108 of that Act, Mich. Comp. Laws sec. 38.1408, provides the following: This state intends that the retirement system be a qualified pension plan created in trust under section 401 of the internal revenue code and that the trust be 1(...continued) for a contribution to an individual retirement account, his deduction should be limited to $1,

108-445.] In the case of any trust now in existence or hereafter created where the trust instrument expressly directs or permits net income to be distributed less frequently than annually, the express provisions of such instrument shall govern the time and manner of making distributions of income. [Ga. Code Ann. sec. 108-446.] The trust at iss

nd and give necessary facts. The bankruptcy records received seem to indicate the petition was prior to 1996 tax year, therefore tax assessment procedures will continue. There are exclusions from gross income of debt cancellation as cited under Code Section 108. Please resubmit your claim with specific reasons for abatement of tax. We are closing your case in the Problem Resolution Program. We apologize for any inconvenience this may have caused you. If you want to appeal our decision to disallo

Section 108(d)(7)(A) specifies that in the case of an S corporation, certain provisions of section 108 shall be applied at the corporate level.

Two laws permit the deduction of straddle losses, Code section 165 and section 108 of the Deficit Reduction Act of 1984 (DEFRA), as amended by the Tax Reform Act of 19 Even in the exceptional case, when investors reported appreciable economic earnings, they immediately terminated trading in those markets.

Two laws permit the deduction of straddle losses, Code section 165 and section 108 of the Deficit Reduction Act of 1984 (DEFRA), as amended by the Tax Reform Act of 19 Even in the exceptional case, when investors reported appreciable economic earnings, they immediately terminated trading in those markets.

Two laws permit the deduction of straddle losses, Code section 165 and section 108 of the Deficit Reduction Act of 1984 (DEFRA), as amended by the Tax Reform Act of 19 Even in the exceptional case, when investors reported appreciable economic earnings, they immediately terminated trading in those markets.

Two laws permit the.deduction of straddle losses, Code section 165 and section 108 of the Deficit Reduction Act of 1984 (DEFRA) , as amended by the Tax Reform Act of ¹8 Even in the exceptional case, when investors reported appreciable economic earnings, they immediately terminated trading in those markets.

lt of the freeing of his assets from obligations by the BIA in 3Depending upon the solvency of the taxpayer and the source or use of the funds borrowed, an amount of income from discharge of indebtedness may be deferred or excluded from income under sec. 108. Petitioner has not raised exclusion under sec. 108, and the record does not support one. 4In an earlier case, Bowers v. Kerbaugh-Empire Co., 271 U.S. 170, 175 (1926), forgiveness of indebtedness was described as a transaction that "did not

8, 497 (1988); Cerone v. Commissioner, 87 T.C. 1, 2 n.1 (1986). Depending upon the solvency of the taxpayer and the source or use of the funds borrowed, an amount of income from discharge of indebtedness may be deferred or excluded from income under sec. 108. Petitioner has not raised exclusion under sec. 108, and the record does not support one. In an earlier case, Bowers v. Kerbaugh-Empire Co., 271 U.S. 170, 175 (1926), forgiveness of indebtedness was described as a transaction that “did not r

Section 108 of the Deficit Reduction Act of 1984, Pub. L. 98- 369, 98 Stat. 494, 630, as amended by section 1808(d) of the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2817, provides as follows: SEC. 108. TREATMENT OF CERTAIN LOSSES ON STRADDLES ENTERED INTO BEFORE EFFECTIVE DATE OF ECONOMIC RECOVERY TAX ACT OF 1981. (a) General Rule.--For pur

Although we find respondent's suggestion credible, without more, we are unable to say with certainty that such a scenario is more likely than not. 10 Petitioner does not argue that he falls within the scope of any of the above exceptions. With respect to the distribution of $16,831.81, however, petitioner argues that Fidelity withheld th