- 456 -
is non-use alone, sufficient to accomplish abandonment." Beus v.
Commissioner, 261 F.2d 176, 180 (9th Cir. 1958), affg. 28 T.C.
1133 (1957). Abandonment of a partnership interest should be
accompanied by some express manifestation, and the need to
manifestly express the intent to abandon is especially important.
See Citron v. Commissioner, supra at 209-210.
II. The Parties' Contentions
Kanter contends on brief:
respondent appeared to concede during trial that the
sole remaining grounds supporting respondent's
disallowance of the bad debt and loss deductions were:
(i) Whether funds disbursed from the
Administration Co. "Special E" account or from other
nominee accounts in fact belonged to Kanter * * * (the
"Special E Issue"); and
(ii) Whether assets which were written-off or sold
were in fact "worthless".
* * * * * * *
Petitioners believe that respondent's concessions
should be interpreted as follows:
(i) where an asset with a substantial cost basis
was sold for $1, $10, or for substantial consideration,
the remaining issue is whether the asset was worth no
more than the selling price; and
(ii) where an asset was written-off as a bad debt
or worthless security, the remaining issue is whether
the asset was worthless.
Kanter argues further that he substantiated and is entitled to
the basis and capital losses claimed on his 1987 Federal income
tax return. Alternatively, he argues that, if the Court holds
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