Dr. Thomas P. Foltz and Eleanor Foltz v. United States

I must respectfully dissent. I would follow Feldman v. Wood, 335 F.2d 264 *604(9th Cir. 1964) rather than Landerman v. C. I. R., 454 F.2d 338 (7th Cir. 1971) upon which the majority opinion relies.

I

As noted in Landerman, the applicable regulations as initially proposed under the 1954 Code, § 1.165(1) (b) Proposed Income Tax Regulations, were silent as to demolition losses within the context of a lease. New regulations proposed in 1959 provided that upon a demolition “pursuant to the terms of a lease” no loss deduction would be allowed but the adjusted basis of the demolished building could be…