Page:United States Statutes at Large Volume 94 Part 3.djvu/755

 PUBLIC LAW 96-589—DEC. 24, 1980

94 STAT. 3399

of this title assigning tax consequences to a disposition, and the debtor shall be treated as the estate would be treated with respect to such asset. "(g) ESTATE SUCCEEDS TO TAX ATTRIBUTES OF DEBTOR.—The estate shall succeed to and take into account the following items (determined as of the first day of the debtor's taxable year in which the case commences) of the debtor— "(1) NET OPERATING LOSS CARRYOVERS.—The net operating loss carryovers determined under section 172. "(2) CHARITABLE CONTRIBUTIONS CARRYOVERS.—The carryover

of excess charitable contributions determined under section 170(d)(1). "(3) RECOVERY EXCLUSION.—Any recovery exclusion under section 111 (relating to recovery of bad debts, prior taxes, and delinquency amounts). "(4) CREDIT CARRYOVERS, ETC.—The carryovers of any credit, and all other items which, but for the commencement of the case, would be required to be taken into account by the debtor with respect to any credit. (5) CAPITAL LOSS CARRYOVERS.—The capital loss carryover determined under section 1212. "(6) BASIS, HOLDING PERIOD, AND CHARACTER OF ASSETS.—In the

case of any asset acquired (other than by sale or exchange) by the estate from the debtor, the basis, holding period, and character it had in the hands of the debtor. "(7) METHOD OF ACCOUNTING.—The method of accounting used by the debtor. "(8) OTHER ATTRIBUTES.—Other tax attributes of the debtor, to

the extent provided in regulations prescribed by the Secretary as necessary or appropriate to carry out the purposes of this section. "(h) ADMINISTRATION, LIQUIDATION, AND REORGANIZATION EXPENSES; CARRYOVERS AND CARRYBACKS OF CERTAIN EXCESS EXPENSES.— "(1) ADMINISTRATION, UQUIDATION, AND REORGANIZATION

EXPENSES.—Any administrative expense allowed under section 503 of title 11 of the United States Code, and any fee or charge assessed against the estate under chapter 123 of title 28 of the United States Code, to the extent not disallowed under any other 28 USC 1911 provision of this title, shall be allowed as a deduction. ^^ *^^ "(2) CARRYBACK A N D CARRYOVER O F EXCESS ADMINISTRATIVE COSTS, ETC., TO ESTATE TAXABLE YEARS.— "(A) DEDUCTION ALLOWED.—There shall be allowed as a

deduction for the taxable year an amount equal to the aggregate of (i) the administrative expense carryovers to such year, plus (ii) the administrative expense carrybacks to such year. "(B) ADMINISTRATIVE EXPENSE LOSS, ETC.—If a net operat-

ing loss would be created or increased for any estate taxable year if section 172(c) were applied without the modification contained in paragraph (4) of section 172(d), then the amount of the net operating loss so created (or the amount of the increase in the net operating loss) shall be an administrative expense loss for such taxable year which shall be an administrative expense carryback to each of the 3 preceding taxable years and an administrative expense carryover to each of the 7 succeeding taxable years. "(C) DETERMINATION OF AMOUNT CARRIED TO EACH TAXABLE

YEAR.—The portion of any administrative expense loss

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