Final answer:
It is true that a loss can be taken for the unrecovered basis of lessor-owned leasehold improvements when they are abandoned at lease termination.
Step-by-step explanation:
When it comes to lessor-owned leasehold improvements that are abandoned due to the termination of the lease, it is indeed true that a loss can be taken for the unrecovered basis. Leasehold improvements refer to changes made to rental premises in order to customize it for the needs of a tenant. If those improvements have not been fully depreciated by the time the lease ends, and the leasehold improvements are abandoned, the lessor can claim a loss for tax purposes. This loss reflects the unrecovered investment in the property.
It is important to note that the specifics of how this loss is calculated and claimed can be complex and depend on the current tax laws and regulations. Therefore, lessors should consult with a tax professional to ensure proper handling of the situation.