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17.2 acres controlled by Cactus Wren (plantation II) were
predominately aimed at the creation of a mature jojoba farm and
were not for the purpose of acquiring information about jojoba
that was unknown at the time. Luna found no substantial evidence
that any research was conducted.
Peterson and others had predetermined that the jojoba
cultivated by Cactus Wren on plantation II would be grown using
the rooted cutting method. The decision to use rooted cuttings
on plantation II applied already existing knowledge about jojoba
farming.
Additionally, MBP provided Luna with no expense records
supporting an allocation of the contract fee ($164,057) among
qualifying and nonqualifying activities under section 174.
In the FPAA's, respondent determined that Cactus Wren and
Yuma Mesa were not entitled to deductions claimed for tax
counseling fees and that Yuma Mesa was not entitled to a
deduction claimed for guaranteed payments to partners.
Petitioners presented no evidence on these issues at trial and
did not dispute respondent's determinations by oral argument or
on brief. Accordingly, we have treated these issues as conceded
by petitioners.
OPINION
This partnership proceeding is governed by the procedural
rules of the Tax Equity and Fiscal Responsibility Act of 1982
(TEFRA), Pub. L. 97-248, sec. 402(a), 96 Stat. 648, codified as
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