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ORDER

The Opinion filed February 2, 2009 and appearing at 554 F.3d 785 , 2009 WL 225332 (C.A.9) is amended as follows:

1. Following the first sentence in the third full paragraph, insert the sentence “The Tax Court opinion is attached as an appendix.”

2. The Tax Court opinion, LOAD, Inc. v. Comm’r, 93 T.C.M. (CCH) 969 , 2007 WL 675950 (2007), in its entirety, is attached to this opinion as an appendix.

OPINION

Appellants LOAD, Inc. and COAD, Inc. challenge the Tax Court’s determination of a federal income tax deficiency for the tax year ending September 30, 2000. The Tax Court held that certain of ADI’s expenses were not deductible as ordinary and necessary business expenses under 26 U.S.C. § 162 (a) and must be capitalized as inventory costs under 26 U.S.C. § 263A.

We review the Tax Court’s findings of fact for clear error and its conclusions of law de novo. Kelley v. Comm’r, 45 F.3d 348 , 350 (9th Cir.1995). Our exclusive jurisdiction to review a final decision of the Tax Court arises under 26 U.S.C. § 7482 .

The Tax Court wrote an extensive opinion on this matter. See LOAD, Inc. v. Comm’r, 93 T.C.M. (CCH) 969 , 2007 WL 675950 (2007). The Tax Court opinion is attached as…