- 8 - Commissioner, T.C. Memo. 1998-6.3 See Greene v. Commissioner, supra. It is petitioners’ burden, in any event, to establish the context in which their deductions were taken. See Rule 142(a); Welch v. Helvering, 290 U.S. at 115; Bixby v. Commissioner, 58 T.C. 757, 791 (1972). In Utah Jojoba I Research v. Commissioner, supra, we found that the partnership was organized on December 27, 1982, as a limited partnership with a described purpose of conducting research and development (R&D) involving the jojoba plant. CFS prepared the private placement memorandum (the offering) dated November 10, 1982, and an R&D agreement and licensing agreement executed on December 31, 1982. The partnership was formed with subscriptions for 247 units for a total capitalization of $2,094,560. The offering identified William G. Kellen as the general partner and characterized him as having “no previous experience” with respect to jojoba beans. The offering also indicated that 3 Although the parties disagree as to what was apparent from the partnership’s promotional materials, they have stipulated that the Court found in Utah Jojoba I Research v. Commissioner, T.C. Memo. 1998-6, that the activities of the partnership did not constitute a trade or business and that the research and development and licensing agreements entered into by the partnership had been designed and entered into solely to provide a mechanism to disguise the capital contributions of limited partners as currently deductible expenditures. In their brief, petitioners request a finding of fact that the Court’s decision found that the activities of the partnership did not constitute a trade or business.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011