Unpublished Disposition, 930 F.2d 920 (9th Cir. 1991)

MEMORANDUM^* 

Appellant-taxpayer appeals the decision of the United States Tax Court denying various deductions to a partnership in which appellant-taxpayer had an interest. We affirm the judgment of the tax court for the reasons stated in its disposition. With respect to all issues save the method of depreciating the partnership's interest in the production service films, the tax court's findings were not clearly erroneous, which is the applicable standard of review. See, e.g., Karme v. Commissioner, 673 F.2d 1062, 1065 (9th Cir. 1982) (tax court determination that transaction lacks economic substance reviewed for clear error).

With regard to the method of depreciation of the partnership's interest in the production service films, the tax court's denial of the motion for reconsideration was not an abuse of discretion. We agree with the I.R.S. that the action reviewed here is the tax court's denial of the partnership's motion for reconsideration. See Parkinson v. C.I.R., 647 F.2d 875, 876 (9th Cir. 1981) (tax court's denial of motion for reconsideration is reviewed for "clear abuse of discretion"). The tax court was not required to agree with the taxpayer that he was justified in failing to litigate the method of depreciation issue at trial. It was not unreasonable for the tax court to disagree with the taxpayer that he should be excused from failing to raise the issue earlier.

AFFIRMED.