Your firms client, Samuel Silverstone, invested $80,000 in the stock of a new start-up company that opened a chain of restaurants that specialized in exotic foods called Gnu-Shu. As might be expected, this venture has not been very successful and Samuels stock has lost its value. Samuel knows that worthless securities are normally treated as a short-term capital loss (STCL), which means the $3,000 annual maximum deduction and other limits apply. While talking to one of his co-investors, he discovers that her tax advisor (Eric McShamus) contents that if a taxpayer abandons a security it is not subject to the STCL treatment. Samuel is very excited about this and is anxious to asset that he abandoned the Gnu Shu stock so that he can deduct the entire $80,000 loss in the current year. A. Regulation citation and date? B. Do you need more information? C. Conclusion? Can he deduct the $80,000?