MILLEDGE L. MIDDLETON AND ESTATE OF LEONE S. MIDDLETON, DECEASED, MILLEDGE L. MIDDLETON, EXECUTOR, PETITIONERS,
v.
COMMISSIONER OF INTERNAL REVENUE, RESPONDENT

11th Cir. | 1982-12-06
No. 82-8118
Before HILL and VANCE, Circuit Judges, and TUTTLE, Senior Circuit Judge.
693 F.2d 124 Court of Appeals for the Eleventh Circuit (1982) Caution
Cited by 6 cases
Opinion of the Court
PER CURIAM:

PER CURIAM:

This appeal presents the issue, as stated by the appellant, whether the losses resulting from the abandonment of real properties, each subject to nonrecourse debt in excess of the fair market value of the property, are capital losses subject to the limitations of §§ 1211 and 1212 of the Internal Revenue Code of 1954 or are ordinary losses under § 165 of the Internal Revenue Code of 1954.

The Tax Court held that when the owners of these properties volunteered to deed such parcels back to the mortgagees during the tax years, such actions by the taxpayers resulted in an abandonment of the parcels and that such abandonment resulted in capital losses rather than ordinary losses as claimed by the taxpayers. 77 T.C. 310 (1981).

We affirm the decision of the Tax Court and base our determination on the opinion of the Tax Court.

AFFIRMED.

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  • Yarbro v. Comm'r OF Internal Revenue Serv., 737 F.2d 479 (5th Cir. 1984)
    …was held primarily for sale to customers in the ordinary course of business. Finally, the Tax Court, following the course charted in Freeland v. Commissioner, 74 T.C. 970 (1980), and Middleton v. Commissioner, 77 T.C. 310 (1981), aff'd per curiam, 693 F. 2d 124 (11th Cir.1982), held that an abandonment of property constituted a “sale or exchange” for purposes of Code Sections 1211 and 1222. Statutory Context Section 165(a) of the Internal Revenue Code of 1954 provides, as a general rule, that taxpayers m…
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  • Tucker v. Commissioner OF Internal Revenue, 841 F.3d 1241 (11th Cir. 2016)
    …ed to give a third party notice of the abandonment.”); Middleton v. Comm’r, 77 T.C. 310, 322 (1981), (writing that abandonment requires (1) an intention on the part of the owner to abandon the asset; and (2) an affirmative act of abandonment), aff'd 693 F. 2d 124 (11th Cir. 1982). Additionally, the abandonment must occur in the tax year for which the deduction is claimed. Dezendorf, 312 F. 2d at 96. Determinations regarding the existence and timing of an abandonment are issues of fact. L & C Springs Assoc…
  • Echols v. Commissioner OF Internal Revenue, 935 F.2d 703 (5th Cir. 1991)
    …ement that there is no requirement that a taxpayer relinquish title to an asset in order to establish a loss if such loss is reasonably certain in fact and ascertainable in amount. Middleton v. Commissioner, 77 T.C. 310, 322 (1981) aff'd per curiam, 693 F. 2d 124 (11th Cir.1982). After acknowledging that rule, however, the tax court proceeded to analyze the instant case in light of Middleton, Hopkins v. Commissioner, 15 T.C. 160 (1950) and Freeland v. Commissioner, 74 T.C. 970 (1980), each of which concerned…

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