Benton v. Comm'r
United States Tax Court
P's ch. 11 bankruptcy commenced in 1995, and he was discharged upon the confirmation of his plan of reorganization during 1997. Effectively, at the time of confirmation, all of the estate's assets were transferred to a liquidating trust for the benefit of creditors. P had net operating losses (NOLs) that arose in years prior to the bankruptcy commencement. P's bankruptcy estate also incurred tax losses. The bankruptcy estate succeeded to P's precommencement NOLs.
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P's ch. 11 bankruptcy commenced in 1995, and he was discharged upon the confirmation of his plan of reorganization during 1997. Effectively, at the time of confirmation, all of the estate's assets were transferred to a liquidating trust for the benefit of creditors. P had net operating losses (NOLs) that arose in years prior to the bankruptcy commencement. P's bankruptcy estate also incurred tax losses. The bankruptcy estate succeeded to P's precommencement NOLs. Under sec. 1398(i), I.R.C., P would succeed to the tax attributes (NOLs) of the bankruptcy estate, upon its termination. P contends…
1Opinion of the Court
OREN L. BENTON, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Benton v. Comm'r
No. 7602-02
United States Tax Court
122 T.C. 353; 2004 U.S. Tax Ct. LEXIS 20; 122 T.C. No. 20;
May 12, 2004, Filed
Summary judgment granted, in part. Taxpayer may use prebankruptcy NOLs with respect to his separate tax reporting for year of commencement of his Chapter 11 bankruptcy case and later years.
P's ch. 11 bankruptcy commenced in 1995, and he was
discharged upon the confirmation of his plan of reorganization
during 1997. Effectively, at the time of confirmation, all of
the estate's assets were…
2Cases cited18 opinions
- Pioneer Investment Services Co. v. Brunswick Associates Ltd. PartnershipSupreme Court of the United States · 1993
- Florida Peach Corp. v. CommissionerUnited States Tax Court · 1988
- Dahlstrom v. CommissionerUnited States Tax Court · 1985
- Bond v. CommissionerUnited States Tax Court · 1993
- Cusano v. KleinCourt of Appeals for the Ninth Circuit · 2001
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