Opinion ID: 577995
Heading Depth: 1
Heading Rank: 2

Heading: Abandonment Loss Deduction

Text: 8 An abandonment loss is deductible if evidenced by a closed and completed transaction that is fixed by an identifiable event occurring in the year of the claimed loss, but only if the taxpayer shows both an intention to abandon the asset in question and an affirmative act of abandonment. A.J. Indus., Inc. v. United States, 503 F.2d 660, 670-71 (9th Cir.1974). The evidence showed, inter alia, that Taxpayer failed to notify anyone in 1983 of his purported intent to abandon his claim; he filed a return in 1984 claiming a $241,561 deduction for his Western Reserve limited partnership loss; and he attached a statement to the last page of his 1983 trust return, indicating that he did not consider the issue to be a closed one. 3 9 Because there was ample evidence showing an intent on Taxpayer's part inconsistent with his later claim of abandonment, the Tax Court did not err by ruling that he was not entitled to an abandonment loss deduction.