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In the notices of final partnership administrative
adjustment for Peabody’s taxable years ended March 31, 1994
through 1996, and its short taxable year ended June 30, 1996,
respondent determined that the supply contracts were not like-
kind property as to which Peabody was entitled to nonrecognition
treatment under section 1031.
Discussion
The focus of this case concerns a section 1031 like-kind
exchange of gold mines for coal mines. Respondent acknowledges
that the coal mines and gold mines are like-kind property as to
which Peabody is entitled to nonrecognition treatment under
section 1031(a). In petitioner’s motion for summary judgment and
respondent’s cross-motion for partial summary judgment, the
parties disagree about whether two coal supply contracts are real
property and/or like-kind property within the meaning of section
1031 (i.e., whether the coal supply contracts are boot).
Initially, we must decide whether the coal supply contracts
are considered or treated as real property under New Mexico law.
We must also decide whether those contracts, in the setting of
this case, constitute “like-kind” property within the meaning of
section 1031.
Summary judgment is intended to expedite litigation and
avoid unnecessary and expensive trial. Fla. Peach Corp. v.
Commissioner, 90 T.C. 678, 681 (1988). Summary judgment may be
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