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B. Whether the Partnership Abandoned the Property
On brief, respondent argues alternatively that even if the
June 30, 1986, foreclosure sale did not constitute a final
disposition of the partnership’s project assets, the partnership
had abandoned the project as of June 30, 1986, or alternatively,
as of July 14, 1986 (the date the District Court overruled ANR’s
objections and confirmed the foreclosure sale).31 Respondent has
conceded, consistent with the holding of his September 1986
letter ruling, that no abandonment had occurred as of May 22,
1986. As we understand respondent’s somewhat mercurial position
in this proceeding, events occurring between May 22 and June 30,
1986, or possibly between May 22 and July 14, 1986, or possibly
30(...continued)
project assets were owned by the United States and consequently,
pursuant to secs. 1.47-2(a)(2) and 1.48-1(k), Income Tax Regs.,
the project assets ceased to qualify as sec. 38 property as of
June 30, 1986. It is not the foreclosure sale itself but the
“transfer upon the foreclosure” that represents the final
disposition of assets that would trigger tax credit recapture.
Sec. 1.47-2(a)(1), Income Tax Regs. As respondent has conceded,
a bona fide contest as to the existence of redemption rights
postpones a disposition pursuant to a foreclosure sale.
31 On opening brief (but not on reply brief), respondent
contends broadly that both the partnership and Transco had
abandoned their interests in the project as of June 30, 1986.
Inconsistently, respondent’s response to petitioner’s motion in
limine, filed Jan. 31, 2005, states: “Respondent no longer
contends that the Court should consider the issue of whether the
partners abandoned their partnership interests in GPGA.” We deem
respondent to have waived any claim that Transco abandoned its
partnership interest or its interests in the project (which arose
only by virtue of Transco’s partnership interest). Consequently,
we need not address whether such a partner-level inquiry is
appropriate in this TEFRA proceeding.
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