Paul D. Martyr, Crista L. Martyr v. Commissioner of Internal Revenue

999 F.2d 543 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Paul D. MARTYR, Crista L. Martyr, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. No. 91-70571. United States Court of Appeals, Ninth Circuit. Submitted Oct. 9, 1992. * Decided July 23, 1993. Before HUG, FLETCHER and BRUNETTI, Circuit Judges. 1 MEMORANDUM * 2 Appellants were limited partners in three research and development partnerships, Mass Data Storage, Computech Research Investors, Ltd., and Technology Research Investors. In 1980 and 1981, appellants claimed income tax deductions under 26 U.S.C. § 174 for a distributive share of the research and experimentation expenses incurred by these partnerships. The Commissioner disallowed the deductions, contending that the partnerships had not incurred their research expenditures in connection with an existing or prospective business of their own, as required by the statute. See 26 U.S.C. § 174 (a)(1); Snow v. Commissioner,…