- 9 -
grant summary judgment, the factual materials and inferences
drawn from them must be considered in the light most favorable to
the nonmoving party. Bond v. Commissioner, 100 T.C. 32, 36
(1993); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). If the
conditions for summary judgment are otherwise satisfied with
respect to a single issue or fewer than all the issues in a case,
then partial summary judgment may be granted, notwithstanding
that all the issues in the case are not disposed of. Rule
121(b); Naftel v. Commissioner, supra.
The parties agree, and we concur, that no issues of material
fact are in dispute. Consequently, we may render judgment on the
issue in this case as a matter of law. Rule 121(b). The issue
for decision is whether the obligation incurred by petitioner to
pay the rollover charge to ICC is deductible as an ordinary and
necessary business expense under section 162, or whether it must
be capitalized under section 263 and amortized over the term of
the Second Lease.
Whether an expenditure may be deducted or must be
capitalized ultimately depends on the facts and circumstances
of each case. Deputy v. Du Pont, 308 U.S. 488, 496 (1940).
An expenditure incurred in a taxpayer's business may qualify as
ordinary and necessary under section 162 if it is appropriate and
helpful in carrying on that business, is commonly and frequently
incurred in the type of business conducted by the taxpayer, and
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011