Unpublished Disposition, 921 F.2d 280 (9th Cir. 1991)

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US Court of Appeals for the Ninth Circuit - 921 F.2d 280 (9th Cir. 1991)

James B. MARINE, Vera L. Marine, Petitioners-Appellants,v.COMMISSIONER, INTERNAL REVENUE SERVICE, Respondent-Appellee.

No. 89-70451.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted Dec. 6, 1990.Decided Jan. 2, 1991.

Before JAMES R. BROWNING, PREGERSON and LEAVY, Circuit Judges.


Taxpayers James B. Marine and Vera L. Marine invested in two limited partnerships which purported to provide investors with significant tax deductions. They now appeal the decision of the Tax Court disallowing theft loss deductions and depreciation and interest expense deductions associated with these investments.

We affirm the disallowance of the theft loss deductions taken in 1979 and 1980 on one of the altnerate grounds, and for the reasons stated by the Tax Court in its opinion, Marine v. Commissioner, 92 T.C. 958 (1989), namely, that the taxpayers are entitled to such deductions only in the year in which the knowledge of the theft and the loss coexist. Id. at 974-78. We affirm the Tax Court on one of the alternate grounds, and for the reasons relied upon by the Court, namely, that the taxpayers are not entitled to their proportionate share of the partnerships' depreciation and interest deductions because the transactions on which the deductions are based are without economic substance. Id. at 980-83, 985-88.



This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as provided by 9th Cir.R. 36-3