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Whether an affirmative act to abandon has taken place is
determined from all the facts and surrounding circumstances.
United Calif. Bank v. Commissioner, 41 T.C. 437, 451 (1964),
affd. per curiam 340 F.2d 320 (9th Cir.1965).
In this case, the record is not clear as to when or even if
Geotech abandoned its investment. From the record, it appears
that Geotech may have abandoned its investment in 1989 when
petitioner demanded a return of his investment, a similar
investment or stock in Geotech. If this is the situation,
petitioner should have taken a deduction, if any was allowable,
in 1989, not in 1991. Based on the record in this case, we hold
that petitioner has not proved he is entitled in 1991 to a
deduction resulting from an abandonment of the Rio Blanco lease.
Accordingly, we hold that petitioner is not entitled to an
ordinary loss in the amount of $18,750, in connection with his
investment in Geotech.
To reflect the foregoing and concessions,
Decision will be entered
for respondent.
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Last modified: May 25, 2011