Federal Home Loan Mortgage Corporation - Page 8

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          depositions, admissions, and other acceptable materials, together           
          with the affidavits, if any, show that there is no genuine issue            
          as to any material fact and that a decision may be rendered as a            
          matter of law.  Rule 121(b); Elec. Arts, Inc. v. Commissioner,              
          118 T.C. 226, 238 (2002).  The moving party has the burden of               
          proving that no genuine issue of material fact exists and that              
          moving party is entitled to judgment as a matter of law.                    
          Rauenhorst v. Commissioner, 119 T.C. 157, 162 (2002).                       
          II.  Amortization of Intangible Assets                                      
               Section 167(a) provides:                                               
                    SEC. 167(a).  General Rule.--There shall be                       
               allowed as a depreciation deduction a reasonable                       
               allowance for the exhaustion, wear and tear (including                 
               a reasonable allowance for obsolescence)--                             
                         (1) of property used in the trade or                         
                    business, or                                                      
                         (2) of property held for the production of                   
                    income.                                                           
          Section 1.167(a)-3, Income Tax Regs., which interprets section              
          167(a), provides:                                                           
                    If an intangible asset is known from experience or                
               other factors to be of use in the business or in the                   
               production of income for only a limited period, the                    
               length of which can be estimated with reasonable                       
               accuracy, such an intangible asset may be the subject                  
               of a depreciation allowance.  Examples are patents and                 
               copyrights.  An intangible asset, the useful life of                   
               which is not limited, is not subject to the allowance                  
               for depreciation.  No allowance will be permitted                      
               merely because, in the unsupported opinion of the                      
               taxpayer, the intangible asset has a limited useful                    







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Last modified: May 25, 2011