§1082
60 cases·1 followed·4 overruled·55 cited—2% support
Statute Text — 26 U.S.C. §1082
Statute text not available for this section.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.1082-1 Basis for determining gain or loss
- Treas. Reg. §Treas. Reg. §1.1082-1(a) For determining the basis of property acquired in a taxable year beginning before January 1, 1942, in any manner described in section 372 of the Internal Revenue Code of 1939 prior to its amendment by the Revenue Act of 1942 (56 Stat.
- Treas. Reg. §Treas. Reg. §1.1082-1(b) If the property was acquired in a taxable year beginning after December 31, 1941, in any manner described in section 1082 (other than subsection (a)(2)), or section 372 (other than subsection (a)(2)) of the Internal Revenue Code of 1939 after its amendments, the basis shall be that prescribed in section 1082 with respect to such property.
- Treas. Reg. §Treas. Reg. §1.1082-1(c) Section 1082 makes provisions with respect to the basis of property acquired in a transfer in connection with which the recognition of gain or loss is prohibited by the provisions of section 1081 with respect to the whole or any part of the property received.
- Treas. Reg. §Treas. Reg. §1.1082-2 Basis of property acquired upon exchanges under section 1081 (a) or (e)
- Treas. Reg. §Treas. Reg. §1.1082-2(a) In the case of an exchange of stock or securities for stock or securities as described in section 1081 (a), if no part of the gain or loss upon such exchange was recognized under section 1081, the basis of the property acquired is the same as the basis of the property transferred by the taxpayer with proper adjustments to the date of the exchange.
- Treas. Reg. §Treas. Reg. §1.1082-2(b) If, in an exchange of stock or securities as described in section 1081 (a), gain to the taxpayer was recognized under section 1081 (e) on account of the receipt of money, the basis of the property acquired is the basis of the property transferred (adjusted to the date of the exchange), decreased by the amount of money received and increased by the amount of gain recognized upon the exchange.
- Treas. Reg. §Treas. Reg. §1.1082-2(c) Section 1081(e) provides that no loss may be recognized on an exchange of stock or securities for stock or securities as described in section 1081(a), although the taxpayer receives money or other nonexempt property from the transaction.
- Treas. Reg. §Treas. Reg. §1.1082-2(d) Section 1082 (a) does not apply in ascertaining the basis of property acquired by a corporation by the issuance of its stock or securities as the consideration in whole or in part for the transfer of the property to it.
- Treas. Reg. §Treas. Reg. §1.1082-2(e) For purposes of this section, any reference to section 1081 shall be deemed to include a reference to corresponding provisions of prior internal revenue laws.
- Treas. Reg. §Treas. Reg. §1.1082-3 Reduction of basis of property by reason of gain not recognized under section 1081(b)
- Treas. Reg. §Treas. Reg. §1.1082-3(a) Introductory.
- Treas. Reg. §Treas. Reg. §1.1082-3(b) General rule.
- Treas. Reg. §Treas. Reg. §1.1082-3(c) Special cases.
- Treas. Reg. §Treas. Reg. §1.1082-4 Basis of property acquired by corporation under section 1081(a), 1081(b), or 1081(e) as contribution of capital or surplus, or in consideration for its own stock or securities
- Treas. Reg. §Treas. Reg. §1.1082-5 Basis of property acquired by shareholder upon tax-free distribution under section 1081(c) (1) or (2)
- Treas. Reg. §Treas. Reg. §1.1082-5(a) Stock or securities.
- Treas. Reg. §Treas. Reg. §1.1082-5(b) Stock rights.
- Treas. Reg. §Treas. Reg. §1.1082-5(c) Cross reference.
- Treas. Reg. §Treas. Reg. §1.1082-6 Basis of property acquired under section 1081(d) in transactions between corporations of the same system group
- Treas. Reg. §Treas. Reg. §1.1082-6(a) If property was acquired by a corporation which is a member of a system group, from a corporation which is a member of the same system group, upon a transfer or distribution described in section 1081 (d)(1), then as a general rule the basis of such property in the hands of the acquiring corporation is the basis which such property would have had in the hands of the transferor if the transfer or distribution had not been made.
- Treas. Reg. §Treas. Reg. §1.1082-6(b) An exception to the general rule is provided for in case the property acquired consists of stock or securities issued by the corporation from which such stock or securities were received.
- Treas. Reg. §Treas. Reg. §1.1082-6(c) §1.1082-6(c)
60 Citing Cases
ed the statute in 1997 to change the carryback period to 2 years and the carryover period to 20 years. 14 provided 3 years for certain portions of net operating losses related to casualty losses. See Taxpayer Relief Act of 1997, Pub. L. No. 105-34, § 1082, 111 Stat. 788, 950. The relevant congressional reports explained that the carryback provisions were intended to address typical business cycles, but that “allowing a two-year carryback of NOLs is sufficient to account for these business cycles
Forms 982, “Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)”, filed with the returns for 2011 and 2012 claimed exclusion of the canceled indebtedness as “insolvent”.) The Commissioner filed his answer, which defended the adjustments in the NOD and made affirmative allegations in support of the determination that Mr.
788, 950. On the basis of our review of the returns in the record, we find that petitioners did not elect to waive the NOL carryback period with respect to any of the NOL carryforwards claimed for 2008 and 2009. Petitioners argue that respondent’s failure to produce a more enlightening transcript or pre-1995 tax returns should res
Exterra subsequently filed an amended Form 1120S, in which it reduced its gross receipts by $2,741,399 and attached Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).
by each Loss Subsidiary included as an attachment pages from a “Detail General Ledger” that, in regard to accrued interest and principal on the Deficiency Notes, include entries dated May 1, 2013, with the transaction description “W/O.” Each of those returns also includes Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).
1082(a), 111 Stat. at 950, amended section 172(b)(1)(A) to include a two-year carryback and twenty-year carryforward. - 21 - [*21] material and pertinent facts, including a detailed schedule showing how they computed their NOL deductions. See sec. 1.172-1(c), Income Tax Regs. The minimum showing that they must make is as follows: ! they had a
Kelly reported the discharge of debt due from his affiliated companies and attached Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), reporting a discharge of indebtedness of $145,559,306 that was excluded from gross income on the basis of his insolvency calculated as follows: Entity Amount Greenback Holdings $2,605,586 JCE 3,793,437 IHSD 7,052,215 FCC 4,200,407 - 40 - [*40] Kelly Hospitality 3,027,829 KY&C 4,299,116 LBHorizons 6,418,852
On Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), petitioner reported that he had excludable income of $685,281 “for a discharge of qualified real property business indebtedness applied to reduce the basis of depreciable real property” (i.e., the debt discharged from the lending bank).
Petitioners attached Form 982, Reduction ofTax Attributes Due to Discharge ofIndebtedness (and Section 1082 Basis Adjustment), to their return, claiming that their liabilities exceeded their assets by $165,871.
1082, 111 Stat. at 950. Before this amendment sec. 172(b)(1)(A) generally required a 3-year carryback and a 15-year carryover. NOLs and the carryback and carryoverthereofare determined pursuant to the law applicable to the year in which the losses occurred without regard to other years to which losses are carried (continued...) - 13 - [*13] P
1082(a), 111 Stat. at 950. A shareholder ofan S corporation can directly deduct his or her share of entity-level losses in accordance with the flowthrough rules ofsubchapter S. See sec. 1366(a). The losses cannot exceed the sum ofthe shareholder's adjusted basis in his or her stock and the shareholder's adjusted basis in any indebtedness ofthe
Petitioners attached to their 2008 return a Form 982, Reduction ofTax Attributes Due to Discharge ofIndebtedness (and Section 1082 Basis Adjustment).
at amended return ofher treatment in her 2008 return ofpetitioner's claimed COI income of$142,910: "Cancellation ofdebt incorrectly reported as income Form 982 attached." In Form 982, Reduction of Tax Attributes Due to Discharge ofIndebtedness (and Section 1082 Basis Adjust- ment) (Form 982), that petitioner attached to her 2008 amended return, petitioner indicated that petitioner's claimed COI income of$142,910 reported in her 2008 return should have been reported as zero in her 2008 return bec
§§ 1082(o) The administrative record includes two sets ofbylaws for petitioner. The bylaws generally state that petitioner will investigate and report fraudulent activities relating to student loan programs, advocate for student loan recipients, and enforce DOE accreditation standards for all students regardless ofrace or ethnicity. B. Petitioner's
ssioner, 95 T.C. 257, 274 (1990). 14In 1997 sec. 172(b)(1)(A) was amended to generally require a 2-year carryback and a 20-year carryover for NOLs for taxable years beginning after August 5, 1997. See Taxpayer ReliefAct of 1997, Pub. L. No. 105-34, sec. 1082, 111 Stat. at 950. However, NOLs and the carryback and carryforwardthereofare determinedpursuantto the law applicable to the year in which the losses occurred, without regard to the law applicable to other years to which losses are carried b
While petitioner did not report cancellation ofindebtedness income on his 2006 Form 1040, he attached Form 982, Reduction ofTax Attributes Due to Discharge ofIndebtedness (and Section 1082 Basis Adjustment), on which he claimed a reduction oftax attributes due to discharge ofindebtedness income of$110,140.
1082(a), 111 Stat. at 950, an NOL was first carried back 3 tax years and then carried forward for 15. 6 We may determine the amount ofa net operating loss for a year--even ifan assessment oftax for that year is barred--to determine the correct NOL carryover for the tax year that is at issue. See sec. 6214(b); Calumet Indus., Inc. v. Commission
Challenges to the Existence or Amount of Liability You disagree with your liability because you stated you never had an account with Chase Bank and you have never had a credit card from Chase Bank and that Form 982 [Reduction of Tax Attributes Úue to Discharge of Indebtedness (and Section 1082 Basis Adjustment)] would qualify you for insolvency for tax year 2003.
On December 3, 2007, petitioner submitted to respondent Form 982, Reduction of Tax Attributes Due to Discharge'of Indebtedness (and Section 1082 Basis Adjustment), (petitioner's Form 982) .
, 616(a), 617(a)(1), 818(b)(1)(A), 1017(b)(3)(B), 1221(a)(2), 1231(b)(1), 1239(a) and (e), 1245(a)(3), 1250(c), 7871(c)(3)(B)®. Such sections of the 1954 Code were sec. 169(d) (flush language) (repealed 1969), sec. 172(d)(4)(A)(i), sec. 174(b)(1)(C) and (c), sec. 175(c)(1)(A), sec. 615(a) (repealed 1976), sec. 616(a), sec. 1071(a) (repealed 1995), sec. 1082(a)(2)(A) (repealed 2005), sec. 1221(2), sec. 1231(b)(1), sec. 1239(b).
NOL. See Higbee v. Commissioner, 116 T.C. 438 (2001). 4 For purposes of this case involving a 1995 net operating loss and a 1996 taxable year, we consider sec. 172(b)(1)(A) prior to its amendment by the Taxpayer Relief Act of 1997, Pub. L. 105- 34, sec. 1082(a)(1) and (2), 111 Stat. 950. - 6 - taxable year in which the NOL was incurred. Id.; see sec. 301.9100-12T(b), Temporary Proced. & Admin. Regs., 57 Fed. Reg. 43896 (Sept. 23, 1992). Once made, the election is irrevocable. Id. The statute dir
1082(a)(1) and (2), 111 Stat. 950, the carryback and carryover periods were changed. - 5 - arose for which the election is to be in effect. Id. The Secretary is authorized to prescribe the manner for making the election. Sec. 172(b)(3). The Secretary has prescribed the manner for making the election in sec. 301.9100-12T(d), Temporary Proced.
1082(a)(1) and (2), 111 Stat. 950, revised the allowable carryback and carryforward periods to 2 and 20 years, respectively. These amendments do not apply to petitioner’s 1995 and 1996 tax years because the amendment is effective for years after Aug. 5, 1997. - 36 - Section 1.172-1(b), Income Tax Regs., also describes the steps to be taken to
Consequently, the relevant question is whether petitioner’s debt (as opposed to the partnership’s debt) was discharged “in a title 11 case.” 4 Petitioners attached to their 1995 Federal income tax return Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) (Form 982).
1082(a)(1)and (2), 111 Stat. 950, amended sec. 172(b)(1)(A) to require generally a 2-year carryback and a 20-year carryover for NOLs incurred in taxable years beginning after Aug. 5, 1997. Petitioner in his brief claims without discussion that the 20-year rule applies. We disagree. The NOL at issue, if in fact incurred, was incurred well befor
(c)(1)(B) (“to the extent of any basis remaining after the allocation”, “such remaining basis”); sec. 1250(d)(4)(D)(ii) (“the remaining gain not recognized on the transaction”); sec. 4254(a)(2) (“the remaining items not included in any such group”); sec. 1082(a)(2)(G) (“all other remaining property”); sec. 1250(f)(3)(C) (“the remaining property”); sec. 1272(a)(6)(A)(i) (“all remaining payments”); sec. 4943(c)(1) (“the remaining holdings”); sec. 7507(c)(3) (“to the extent of the remaining assets”
1082(a), 111 Stat. 950; see also Intermet Corp. & Subs. v. Commissioner, 117 T.C. 133, 136 n.1 (2001). At the time petitioner filed its Federal income tax return for the tax year ended January 31, 1994, it understated its income tax by $225,753. The tax shown as due on petitioner’s return for the year was zero. The parties agree that for the t
(c)(1)(B) (“to the extent of any basis remaining after the allocation”, “such remaining basis”); sec. 1250(d)(4)(D)(ii) (“the remaining gain not recognized on the transaction”); sec. 4254(a)(2) (“the remaining items not included in any such group”); sec. 1082(a)(2)(G) ("all other remaining property”); sec. 1250(f)(3)(C) (“the remaining property”); sec. 1272(a)(6)(A)(i) (“all remaining payments”); sec. 4943(c)(1) (“the remaining holdings”); sec. 7507(c)(3) (“to the extent of the remaining assets”
1082(a), 111 Stat. 950. 2The Omnibus Budget Reconciliation Act of 1990 (OBRA 1990), Pub. L. 101-508, sec. 11811(b), 104 Stat. 1388-532, combined former sec. 172(j) (relating to product liability losses) and 172(k) (relating to deferred statutory or tort liability losses) redesignating them sec. 172(f). The provision is effective for net operat
1082(a)(1) and (2), 111 Stat. 950. - 4 - period with respect to the net operating loss incurred in the taxable year ending December 31, 1994.” The only questionable aspect about petitioners’ statement is that they referred to section 172(B)(3) instead of section 172(b)(3). The use of the upper case “B”, however, does not create confusion as t
Section 172(b)(1)(A) generally provides that the carryback period for an NOL is 3 years and that the carryover period is 15 years.1 Section 172(b)(1)(C) provides a special rule that extends the carryback period from 3 years to 10 years for specified liability losses.
ule of section 1366(b) could apply to a solvent shareholder of an insolvent S corporation.2 2 It’s interesting but irrelevant that petitioner’s Form 1040 for 1991 includes a Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)) that indicates petitioner was also insolvent and had substantial COD unrelated to MAI that was applied in reduction of his own NOL for the year and carryovers from prior years.
It’s interesting but irrelevant that petitioner’s Form 1040 for 1991 includes a Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)) that indicates petitioner was also insolvent and had substantial COD unrelated to MAI that was applied in reduction of his own NOL for the year and carryovers from prior years.