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Mr. Brayshaw did incur some expenses which we find to be
deductible. In addition to the yacht’s normal berth, Mr.
Brayshaw paid duplicative expenses in order to berth the yacht at
locations nearer to where he was required to take measurements.
We hold that petitioners are entitled to deduct under section
174(a) the following research and experimental expenses:
Boat slip rental (check no. 1092) $440
Boat slip key (check no. 1065) 60
Boat slip key (check no. 1096) 20
Boat slip rental (check no. 3031) 340
860
Finally, we come to miscellaneous items which petitioners
classified as being boat-related. First, we hold that a $99.58
wristwatch purchased by Mr. Brayshaw is not a deductible expense:
We find that this was primarily a personal expense, despite the
watch’s occasional use in taking measurements of currents. We
likewise hold that the “various boat supplies”, “boating
literature”, and sealant for the boat are also personal expenses,
because there is little or no connection between the expenses and
Mr. Brayshaw’s research. Furthermore, many of these expenses
could have been incurred in connection with petitioners’ sail
boat, rather than the yacht.
Computer-related expenses
Petitioners, both in their individual capacities and on
behalf of FDLS, purchased a variety of computer and computer-
related equipment during 1996, including a zip drive, a monitor,
a desktop computer, a facsimile machine, modems, and software.
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