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GSD under section 1398(b)(2) and (g) when petitioner filed his
petition in bankruptcy on July 11, 1991, and it held petitioner’s
interest in GSD at the end of GSD’s 1991 taxable year, December
31, 1991. Thus, the bankruptcy estate succeeded to petitioner’s
share of the 1991 NOL. See sec. 1398(f). Petitioner’s transfer
of his interest in GSD to the bankruptcy estate was not a change
in interest requiring an allocation of his distributive share of
GSD’s partnership items between himself and the bankruptcy estate
for purposes of section 706(d)(1).
D. Whether the GSD Partnership Interest Was Abandoned by the
Bankruptcy Trustee and Reverts to Petitioner
Petitioners contend that petitioner’s interest in GSD was
not administered by the bankruptcy trustee, and thus it reverts
to the debtor as though he had not filed a bankruptcy petition.
See 11 U.S.C. sec. 554 (West 1988). Petitioners suggest that 11
U.S.C. section 363 (West 1988) lists use, sale, or lease of
property as examples of what is contemplated by a bankruptcy
trustee’s administration of an asset. Petitioners argue that the
bankruptcy trustee did not administer the GSD partnership
interest because he filed no motion to sell, exchange,
distribute, lease, use, or hypothecate the GSD partnership
interest or to otherwise dissolve the partnership. Petitioners
cite In re Dewsnup, 908 F.2d 588 (10th Cir. 1990), for the
proposition that a partnership asset abandoned by a bankruptcy
trustee returns to the debtor (petitioner) as if the partnership
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