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rights were received in 1983, years after the land was acquired
in 1976, and in a separate transaction. The partnership then, in
1992, sold the water rights separately from the land and retained
the same land it had acquired in 1976.
Impossibility of Allocation of Portion of Tax Basis in Land
If the above issues are resolved in favor of petitioners,
petitioners move for partial summary judgment on the issue as to
whether, on the facts of this case, it would be impossible to
allocate a specific portion of the partnership's total cost or
tax basis in its land to the funds the partnership received for
the water rights. Because of the alleged impossibility of
allocating any specific portion of the partnership's land cost to
the water rights, petitioners, as a matter of summary judgment,
would allocate the partnership's total $675,000 tax basis in the
land to the $1,088,132 the partnership received for the water
rights.
If we address this issue, respondent objects to partial
summary judgment on the ground that material facts remain in
dispute as to what an appropriate allocation would be of the
partnership’s tax basis in the land to the funds the partnership
received for the water rights.
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