12
that petitioner has not established that her right to the
commissions from the customers contained on the lists had an
ascertained value separate and distinct from other intangible
rights she acquired.
For purposes of depreciation and amortization, a taxpayer's
basis in purchased property is the cost, including any valid
liabilities incurred in acquiring the property. Crane v.
Commissioner, 331 U.S. 1 (1947). Ordinarily, recourse
liabilities are included in basis because the taxpayer has a
fixed, unconditional obligation to pay, with interest, a specific
sum of money. Waddell v. Commissioner, 86 T.C. 848, 898 (1986),
affd. 841 F.2d 264 (9th Cir. 1988). A borrower does not incur
the same personal obligation to pay under a nonrecourse
liability. However, a nonrecourse obligation will be included in
a taxpayer's cost basis if it is a true debt. Id. An obligation
that is contingent will not be recognized for the purposes of
determining cost basis. Id. The principle that an obligation or
liability that is contingent will not be recognized for the
purposes of determining cost basis predates cases involving tax
sheltered investments and applies with equal force in cases not
involving tax shelters. See, e.g., Lemery v. Commissioner, 52
T.C. 367, 377-378 (1969), affd. on another issue 451 F.2d 173
(9th Cir. 1971). A debt will be recognized for tax purposes if
it appears likely, based on the facts and circumstances at the
outset of the transaction--including reasonable revenue
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