Diamond v. Commissioner
United States Tax Court
Petitioner was a limited partner in Robotics which was a limited partner in the project partnership, an Israeli limited partnership. The project partnership's general partner was Elco, a publicly held Israeli corporation. The project partnership was formed to conduct research and development work with respect to an arc welder with an optical seam follower.
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Petitioner was a limited partner in Robotics which was a limited partner in the project partnership, an Israeli limited partnership. The project partnership's general partner was Elco, a publicly held Israeli corporation. The project partnership was formed to conduct research and development work with respect to an arc welder with an optical seam follower. The project partnership agreement gave Elco the right to manufacture, produce, and/or market the welder as exclusive and irrevocable licensee. Held, expenditures of the project partnership were not in connection with any trade or business,…
1Opinion of the Court
WHITAKER, Judge:
By statutory notice dated July 14, 1986, respondent determined deficiencies in and additions to petitioners’ Federal income tax for the years and in the amounts as follows:
Addition to tax
sec. 6659 1 Amount Year
$5,752.20 $19,174 1981
2,256.90 7,523 1982
Respondent also determined that petitioner was hable for increased interest under section 6621(c). The issues are: (1) Whether Elco R&B Associates (the project partnership), an Israeli limited partnership, was engaged in a trade or business so that expenses incurred by it in 1981 and 1982 for research and development may be…
2Cases cited20 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Gregory v. HelveringSupreme Court of the United States · 1935
- Rose v. CommissionerUnited States Tax Court · 1987
- Surloff v. CommissionerUnited States Tax Court · 1983
15 more not listed; retrieve them via the Exa API.
3Cited by38 opinions
- Krause v. CommissionerUnited States Tax Court · 1992
- Louis H. Diamond, Madelene Diamond v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1991
- William L. Zink and Frances P. Zink v. United StatesCourt of Appeals for the Fifth Circuit · 1991
- United States v. Ronald H. PachecoCourt of Appeals for the Ninth Circuit · 1990
- Utah Jojoba I Research v. CommissionerUnited States Tax Court · 1998
33 more not listed; retrieve them via the Exa API.