- 9 - functioned only as an investor, id. at 687, and denied the taxpayers the deduction under section 174(a): LaSala's "royalty" interest in the development and commercialization of the four inventions was analogous to that of an investor in securities. After the transactions of December 24, 1979, LaSala had no ownership interest in the inventions and no control over their actual development, production, or marketing. * * * Id. at 689. The factual situation in Green is similar to that of petitioners'. In both, a limited partnership rather than the taxpayers themselves was in charge of conducting the research and development. The Court in Green analyzed the agreements between LaSala and NPDC to determine whether LaSala was actually controlling the research and development. That analysis is impossible here, because petitioners have not submitted any substantive information on RCC and how it plans to develop the recyclable plastic containers. Lacking such evidence here, we cannot find that petitioner or RCC was actively involved in a trade or business involving the development or manufacture of recyclable plastic containers. Nor can we find that petitioner or RCC had a realistic prospect of entering into a trade or business with regard to the products that were to be developed by RCC. See Snow v. Commissioner, 416 U.S. 500, 503-504 (1974); Kantor v. Commissioner, supra at 1518. Based on the record, we cannot say that petitioner was any more than an investor in RCC.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
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