- 464 -
transactions in 1987. See also Scully v. United States, 840 F.2d
478 (7th Cir. 1988).
The Court further concludes that Kanter failed to meet his
burden of proving that the Kanters are entitled to abandonment
losses with respect to the BK Eagle, BK Freedom, and BK Lioness
partnership interests. Kanter generally testified that a number
of assets on which the Kanters had claimed capital losses for
1987 were essentially worthless. In our view that is not
sufficient to establish abandonment. Kanter failed to show (1)
an intention on his part to abandon each partnership interest,
and (2) an affirmative act of abandonment with respect to each
partnership interest. See Citron v. Commissioner, 97 T.C. at
209-213. Consequently, we sustain respondent's determination
that the Kanters are not entitled to loss deductions on these
partnership interests for 1987.
The Court also rejects the alternative contention that the
Kanters are entitled to deductions for partial worthlessness of
the promissory notes under section 166(a)(2).56 They made no
56
Although sec. 166(a)(2) provides that a bad debt deduction
for partial worthlessness of a debt may be allowed, certain
requirements must be met. The taxpayer claiming such a deduction
for partial worthlessness generally must have (1) charged off
such portion of the debt for that year, and (2) demonstrated to
the District Director's satisfaction that such portion of the
debt is worthless. See sec. 1.166-3(a), Income Tax Regs.; Austin
Co., Inc. v. Commissioner, 71 T.C. 955, 971 (1979); Findley v.
Commissioner, 25 T.C. 311, 318-319 (1955), affd. per curiam 236
F.2d 959 (3d Cir. 1956); see also Mayer Tank Manufacturing Co.,
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