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24 Cal. 339, 345 (1864) (“[One who abandons property] must leave
it free to the occupation of the next comer, whoever he may be,
without any intention to repossess or reclaim it for himself in
any event, and regardless and indifferent as to what may become
of it in the future.”)). Instead, through a series of
transactions, including the liquidation of Lever, petitioner
effectively retained the partnership interest that he claimed to
have abandoned. See Commissioner v. Clark, 489 U.S. 726, 738
(1989) (“interrelated yet formally distinct steps in an
integrated transaction may not be considered independently of the
overall transaction”); Commissioner v. Court Holding Co., 324
U.S. 331, 334 (1945). Consequently, petitioners are not entitled
to a loss deduction in 1993 based upon petitioner’s surrender of
the distributed partnership interest. It follows that
petitioners are not entitled to the net operating loss carryover
deductions here in dispute, and we so hold.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be
entered for respondent.
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