numbersone
Level 1

Pub 544 states to treat it as an ordinary loss, and it was held for more than 1 year

Loss from abandonment of business or investment property is deductible as a loss. A loss from an abandonment of business or investment property that is not treated as a sale or exchange generally is an ordinary loss. This rule also applies to leasehold improvements the lessor made for the lessee that were abandoned. 

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