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petitioner (or that petitioner received the properties from LY
Enterprises subject to such liabilities) and that such
liabilities offset or reduced the gain that otherwise would have
been realized if petitioner had received the properties without
assuming or taking the properties subject to any corporate
liabilities. Thus, petitioner argues with regard to the
underlying merits of the issue in this case that the $147,262
value and the $72,262 gain she reported on her 1986 Federal
income tax return, on receipt of the properties from LY
Enterprises, are not inconsistent with the approximate $2 million
tax bases that she and the Lily Partnership claimed, and that
respondent agreed to, as the proper total tax bases for purposes
of calculating the amount of depreciation allowable on the
properties for later years, specifically for petitioner’s 1989
year that was involved in the 1989 Fong case.
The existence, validity, and amount of alleged liabilities
that might explain the $72,262 gain reported by petitioner for
1986 raise issues of fact relating only to the underlying
substantive tax issue in this case, and such issues of fact are
not relevant in deciding petitioner’s motion for summary
judgment. In other words, for purposes of ruling on petitioner's
motion for summary judgment, we assume that in settling the 1989
Fong case, petitioner and respondent agreed to the approximate
total $2 million as the total tax bases for the properties. We
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