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Abstract

I. Introduction

II. Abandonments in General ... A. What Constitutes an Abandonment ... B. Timing the Abandonment Loss Deduction ... C. Income Tax Consequences ... 1. Prerequisites to the Abandonment Deduction ... 2. Income Tax Effect ... 3. Encumbered Property

III. Abandoning a Partnership Interest ... A. What Constitutes the Abandonment of a Partnership Interest ... B. Tax Considerations ... 1. Overview ... 2. No Liabilities ... 3. Relief from Liabilities ... 4. Non-Sale Transfers—752(b) v. 752(d) ... 5. Worthlessness ("Practical Abandonment") ... C. Impact of the Economic Recovery Tax Act

IV. Conclusion

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