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acquisition costs incurred in that year, after the
underlying asset had been fully amortized. Arrowsmith
v. Commissioner, 344 U.S. 6 (1952) and sec. 1.338(b)-
3T, Temporary Income Tax Regs., 51 Fed. Reg. 3592 (Jan.
29, 1986), applied.
James L. Malone III, for petitioner.
Lawrence K. Letkewicz and Jan E. Lamartine, for respondent.
OPINION
NIMS, Judge: This matter is before the Court on
petitioner's motion and respondent's cross-motion for partial
summary judgment filed pursuant to Rule 121 on July 26, 1996, and
November 8, 1996, respectively. Petitioner moves for partial
summary judgment in its favor, arguing that it is entitled to
deduct contingent acquisition costs incurred after the asset to
which they pertain has been completely amortized. Respondent
objects to petitioner's motion and also moves for partial summary
judgment in her favor, arguing in part that the expiration of the
useful life of the asset bars any further cost recovery by
petitioner. For the reasons detailed below, we shall grant
petitioner's motion, and deny respondent's cross-motion for
partial summary judgment.
Unless otherwise indicated, all Rule references are to the
Tax Court Rules of Practice and Procedure. All section
references are to sections of the Internal Revenue Code in effect
as of the date of the initial transaction underlying the dispute.
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