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testified at trial that U.S. Agri was operating commercial jojoba
farms on 906 acres of land in Desert Center and Blythe,
California, in addition to the 400 acres U.S. Agri had allegedly
set aside for R&D partnerships focused on jojoba. Respondent's
expert witness, Chen, visited U.S. Agri's greenhouse and
laboratory in Riverside, California. The actions of Kellen,
including irregular visits to the plantation site and forwarding
three of U.S. Agri's progress reports on the status of the
maturing jojoba plants to the limited partners of Utah I, were
merely the actions of an interested investor keeping up with his
investment. There is no evidence that Kellen ever inspected U.S.
Agri's laboratory or greenhouse.
There is no evidence before this Court regarding the details
of U.S. Agri's operating budget other than testimony from Pace
that none of U.S. Agri's losses were allocated to Utah I.
Utah I had no employees. See Harris v. Commissioner, 16
F.3d at 80 n.10. Petitioner presented no evidence that Utah I
exercised any control over the activity on the jojoba plantation.
The evidence before us establishes that Utah I's role was to
distribute the money invested by the limited partners to U.S.
Agri pursuant to agreement. U.S. Agri then used these funds to
finance activities on the 80-acre plantation site, including
planting the jojoba, tilling and leveling the land, and
installing the irrigation system. These funds were also used by
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