Court Opinion

ID: 4481367
Source: CourtListenerOpinion
Date Created: 2020-01-16 21:14:51.494857+00
Date Added: 2024-06-11T15:04:03.322860
License: Public Domain

DebNNEN, J., concurring: I agree with Judge Fay that this is not the type of. situation which Congress had in mind when it enacted section 382(a) to discourage trafficking in loss carryovers; however, I must agree with the majority that the statute as written requires the dis-allowance of the loss carryover, where there has been the requisite change of ownership, unless the corporation continues to carry on a trade or business substantially the same as the business which produced the loss at the end of the taxable year of the corporation. Were it not for the fact that the taxpayer here sold all of its receivables as well as its other business assets prior to the end of its taxable year, I would be inclined to hold that the collection of those receivables as of the end of the taxable years would have furnished sufficient business continuity to meet the requirements of the statute, and the objectives of Congress. However, such was not the case so I must agree with the majority. Furthermore, taxpayer appears to have conceded that it did not carry on any trade or business subsequent to the sale of its assets.