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life. No deduction for depreciation is allowable with
respect to goodwill. * * *
For an intangible asset to be amortizable under section 167(a),
the taxpayer must prove with reasonable accuracy that the asset
is used in the trade or business or held for the production of
income and has a value that wastes over an ascertainable period
of time. Newark Morning Ledger Co. v. United States, 507 U.S.
546, 566 (1993); FMR Corp. v. Commissioner, 110 T.C. 402, 430
(1998). The taxpayer must prove that the intangible asset has a
limited useful life, the duration of which can be ascertained
with reasonable accuracy, and the asset has an ascertainable
value separate and distinct from goodwill and going-concern
value. S. Bancorporation, Inc. v. Commissioner, 847 F.2d 131,
136-137 (4th Cir. 1988), affg. T.C. Memo. 1986-601. In this
Opinion, our primary concern is whether, as a matter of law,
petitioner’s asserted favorable financing can constitute an
“asset” for purposes of section 167(a).
III. Analysis
Petitioner argues that its favorable financing represented a
valuable economic benefit on January 1, 1985, and is an
intangible asset subject to amortization. Petitioner claims that
the fair market value of this “asset” is measured by the
difference between the market cost of using the borrowed money
and its below-market cost. Respondent argues that petitioner’s
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