Independent Electric Supply, Inc. v. Commissioner of Internal Revenue, Frank Prestipino and Leana Prestipino, Hildegard K. Marks, and Jean D. Littlefield v. Commissioner of Internal Revenue

781 F.2d 724 57 A.F.T.R.2d 86 -665, 86-1 USTC P 9192 INDEPENDENT ELECTRIC SUPPLY, INC., Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. Frank PRESTIPINO and Leana Prestipino, Hildegard K. Marks, and Jean D. Littlefield, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. Nos. 85-7060, 85-7077. United States Court of Appeals, Ninth Circuit. Argued and Submitted Dec. 10, 1985. Decided Jan. 24, 1986. Clarence J. Ferrari, San Jose, Cal., for Independent Elec. Supply. J. Richard Johnston, Johnston & Horton, Oakland, Cal., for petitioners-appellants. Richard Driscoll, Ann Belanger Durney, Dept. of Justice, Tax Div., Washington, D.C., for respondent-appellee. Appeal from the United States Tax Court. Before WRIGHT, KENNEDY, and BEEZER, Circuit Judges. KENNEDY, Circuit Judge: 1 The taxpayers in these consolidated cases appeal the Tax Court's disallowance of deductions for depreciation, ordinary and necessary business expenses, and research and development expenses. 1 We affirm. 2 The appellants each invested in limited partnerships, trusts, or both, set up by Fred Solomon and George Nicoladze for the ostensible purpose of…