Shane Michael Optical, Co. - Page 1
















                                 T.C. Memo. 1999-267                                  


                               UNITED STATES TAX COURT                                


                      SHANE MICHAEL OPTICAL, CO., A CALIFORNIA                        
                             CORPORATION, Petitioner v.                               
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                     ELLIOTT SHANE AND ANN SHANE, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      



               Docket Nos. 4426-98, 4431-98.    Filed August 9, 1999.                 


               Gino P. Cecchi, for petitioners.                                       
               Wendy Abkin, for respondent.                                           


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               LARO, Judge:  These cases have been consolidated for trial,            
          briefing, and opinion.  Shane Michael Optical, Co. (Shane                   
          Michael) and Elliott and Ann Shane (collectively the Shanes)                






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