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7443A(b)(4) and Rules 180, 181, and 183.2 The Court agrees with
and adopts the opinion of the Special Trial Judge, which is set
forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
WOLFE, Special Trial Judge: Utah Jojoba I Research (Utah I)
is a limited partnership organized under the laws of California.
The provisions of sections 6221-6233 (the TEFRA partnership
provisions)3 are applicable to Utah I. By notice of final
partnership administrative adjustment (FPAA) respondent
determined the following adjustments to the partnership return of
income of Utah I: (1) Disallowance of a claimed loss for 1982 in
the amount of $1,304,819, including $1,298,627 claimed as
qualified research and experimental expenditures under section
174; and (2) disallowance of a claimed loss of $50,482 for 1983.
William G. Kellen (Kellen), as tax matters partner (TMP), timely
filed a petition with this Court.
We must decide whether the Utah I partnership is entitled to
the claimed deductions for losses for 1982 and 1983 and
particularly whether Utah I is entitled to treat amounts
2 All section references are to the Internal Revenue Code in
effect for the tax years in issue, except as otherwise indicated.
All Rule references are to the Tax Court Rules of Practice and
Procedure.
3 The so-called TEFRA partnership provisions, secs. 6221-6233,
were added to the Code by the Tax Equity and Fiscal
Responsibility Act of 1982 (TEFRA), Pub. L. 97-248, sec. 402(a),
96 Stat. 648.
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