§58 — Denial of certain losses

FRSWPF Unlike LGERS, FRSWPF is governed by article 86 ofchapter 58 ofthe General Statutes ofNorth Carolina.

is readily distinguishable from the instant case; perhaps most saliently, section 29(b)(5) played no role whatsoever in the decision therein.

Commissioner, supra, is distinguishable for several reasons. First, respondent contends that section 58(h) explicitly provided that a particular rule (i.e., the tax benefit rule) was to be adopted in the regulations, whereas "section 865(j) merely provides that regulations are to be promulgated with respect to a particular subject matter but does not state or imply what rules are to be adopted with r

We are not convinced.

With respect to the passive loss provision, for example, section 58 provides expressly that, in applying the limitation for minimum tax purposes, all minimum tax adjustments to income and expense are made and regular tax deductions that are items of tax preference are disregarded.

— The term “alternative minimum taxable income” means the taxable income of the taxpayer for the taxable year— (A) determined with the adjustments provided in section 56 and section 58, and (B) increased by the amount of the items of tax preference described in section 57.

(2) Alternative minimum taxable income.--The term "alternative minimum taxable income" means the taxable income of the taxpayer for the taxable year-- - 15 - (A) determined with the adjustments provided in section 56 and section 58, and (B) increased by the amount of the items of tax preference described in section 57.

(2) Alternative minimum taxable income.--The term "alternative minimum taxable income" means the taxable income of the taxpayer for the taxable year-- - 15 - (A) determined with the adjustments provided in section 56 and section 58, and (B) increased by the amount of the items of tax preference described in section 57.

417 (1972)). "We have recognized that '[g]enerally, taxpayers are liable for the tax consequences ofthe transaction they actually execute and may not reap the benefit ofrecasting the transaction into another one substantially different in economic effect that they might have made.'" IA (quoting Estate ofLeavitt v. Commissioner, 875 F.2d a

58.1-513(C) (West 2005). Petitioner contends that the transfer ofVirginia tax credits could not occur until 2006 after the VDOT registered the credits. We disagree. During 2005, a taxpayerwas not required to apply to the VDOT in order to receive a Virginia tax credit. See id. sec. 58.1-512. During 2005, Va. Code Ann. sec. 58.1-512 provided tha

Code § 58.1-512 on or before December 31, 2005. * * * * * * * (d) The Company will deliver to the Fund valid Virginia Department ofTaxation ("VDT") credit registration number(s) for the Virginia Credits. - 12 - [*12] 10.2 Indemnification. Ifa claim is asserted against the Company or the Fund by VDT [Virginia Department ofTaxation] or IRS that would hav

adopted the Uniform Trust Code sec. 505 in whole effective March 4, 2004. See D.C. Code sec. 19-1301 note (Lexis Nexis 2013). - 14 - a shield against the settlor's creditors." Uniform Trust Code sec. 505 cmt. (citing Restatement (Third) ofTrusts, section 58(2)). Additionally, "whetherthe trust contains a spendthriftprovision or not, a creditor ofthe settlor may reach the maximum amount that the trustee could have paid to the settlor-beneficiary. Ifthe trustee has discretion to distribute the en

This allocation provision provides that State tax credits granted to a partnership are to be - 6 - allocated among all partners either in proportion to their ownership interest in the partnership or as the partners mutually agree .

Commissioner, supra at 672 (reasoning that section 58(h) “was obviously intended to give the tax benefit rule unlimited scope”); see also Occidental Petroleum Corp.

- 15 - (A) determined with the adjustments provided in section 56 and section 58, and (B) increased by the amount of the items of tax preference described in section 57.

- 15 - (A) determined with the adjustments provided in section 56 and section 58, and (B) increased by the amount of the items of tax preference described in section 57.

Commissioner, supra at 672 (reasoning that section 58(h) “was obviously intended to give the tax benefit rule unlimited scope”); see also Occidental Petroleum Corp.

ra, is similar to the issue in this case. In the Occidental Petroleum Corp. case, the taxpayer would have been liable for the minimum tax on tax preference items imposed by section 56 for the taxable year 1977 there involved absent the provisions of section 58. The taxpayer had income from foreign sources which when reduced by losses from its domestic operations resulted in a substantial taxable income. The taxpayer had sufficient foreign tax credits to eliminate its entire Federal income tax li