C. Richard Roose, Jr. and Betty B. Roose - Page 1

          T.C. Memo. 1995-585                                                         


                               UNITED STATES TAX COURT                                


              C. RICHARD ROOSE, JR. AND BETTY B. ROOSE, Petitioners v.                
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 4185-94.             Filed December 6, 1995.                


               John Kennedy Lynch, for petitioners.                                   
               John E. Budde, for respondent.                                         


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COHEN, Judge:  In a notice sent December 28, 1993,                     
          respondent determined deficiencies in, and additions to,                    
          petitioners' Federal income taxes as follows:                               











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