Peabody Natural Resources Company, f.k.a. Hanson Natural Resources Company, Cavenham Forest Industries, Inc., A Partner Other Than The Tax Matters Partner - Page 9

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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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