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basis $3,050,459 of unpaid interest accrued as of December 31,
1984. During the taxable year 1986, petitioner foreclosed on 747
mortgages held on January 1, 1985, and it included in its
adjusted cost basis $675,988 of unpaid interest accrued as of
December 31, 1984.
Discussion
The parties filed cross-motions for partial summary judgment
on the question of whether, for purposes of claiming a bad debt
deduction under section 166, petitioner is entitled to increase
its regular adjusted cost basis in certain mortgages acquired
before January 1, 1985, for unpaid interest which accrued before
January 1, 1985, when it was tax exempt.
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,
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
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