- 8 - was deductible as an expense in 1990. Petitioner explained that the $793,753 deducted on the 1990 return was the amount of the lease termination charge recorded on its books for financial statement purposes, using capital lease accounting rules, but that for Federal tax purposes petitioner was taking the position that it was entitled to deduct the full termination charge of $2.5 million for the taxable year in which it became legally obligated to pay that amount. A supplement to respondent’s response to petitioner's motion for partial summary judgment partially alters respondent’s position. Respondent now concedes that petitioner is entitled "to an amortization deduction for one month in 1990, or to one- sixtieth of the total $2.5 million rollover payment" because petitioner is an accrual basis taxpayer, and because the obligation to make the first monthly payment for the rollover charge accrued on December 1, 1990. Discussion Summary judgment is intended to expedite litigation and avoid unnecessary and expensive trials. Florida Peach Corp. v. Commissioner, 90 T.C. 678, 681 (1988). Summary judgment is appropriate where there is no genuine issue of material fact and decision may be rendered as a matter of law. Rule 121(b); Sundstrand Corp. v. Commissioner, 98 T.C. at 520; Jacklin v. Commissioner, 79 T.C. 340, 344 (1982). In deciding whether toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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