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basis of such asset or the fair market value of such asset as of
such date.” Section 167(g), which forms the basis for
amortization deductions, provides that “The basis on which
exhaustion, wear and tear, and obsolescence are to be allowed in
respect of any property shall be the adjusted basis provided in
section 1011, for the purpose of determining the gain on the sale
or other disposition of such property”. In a prior Opinion, Fed.
Home Loan Mortgage Corp. v. Commissioner, 121 T.C. ___ (2003), we
held that, under section 167(g), petitioner’s adjusted basis for
purposes of amortizing intangible assets held on January 1, 1985,
is determined under the specific adjusted basis rule in DEFRA
section 177(d)(2)(A)(ii). Pursuant to DEFRA section
177(d)(2)(A)(ii), petitioner claims entitlement to amortize its
favorable financing using a fair market value basis as of January
1, 1985.
Discussion
I. Standards for Partial Summary Judgment
Summary judgment is intended to expedite litigation and
avoid unnecessary and expensive trials. FPL Group, Inc. v.
Commissioner, 116 T.C. 73, 74 (2001). Either party may move for
summary judgment upon all or any part of the legal issues in
controversy. Rule 121(a); FPL Group, Inc. v. Commissioner, supra
at 74. A decision will be rendered on a motion for partial
summary judgment if the pleadings, answers to interrogatories,
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