Frank R. Courbois - Page 6

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                Petitioner has conceded that for the year in issue, he                                   
                omitted from his Schedule C gross receipts from his law                                  
                practice in the amount of $19,125.                                                       
                      Petitioner reported the following capital gains and                                
                losses on the Schedule D attached to his return, and he                                  
                reported the following ordinary income on Form 4797,                                     
                Sales of Business Property, attached to his return:                                      
                                                    Schedule D         Form 4797                         
                Gain from the sale of 2709 NW 12th         $17,026     $2,762                            
                Gain from the sale of 1809 Carey Place     58,113      850                               
                Loss from the sale of the "Edmond Lot"     (3,456)       --                              
                                                           71,683      3,612                             

                      Finally, petitioner reported rental income and                                     
                expenses from the Cloudia and three residential rental                                   
                properties on Schedule E, Supplemental Income and Loss.                                  
                Petitioner's Schedule E claims an aggregate loss of                                      
                $78,751, of which $74,350 is attributable to the Cloudia.                                
                Petitioner's Schedule E reports the following:                                           

                Activity            2709 NW 12th 1813-15 NW 22d 1809 Carey Pl.  Cloudia Total            
                Rents received      --           $3,914         --            $600    $4,514             
                Cleaning and                                                                             
                maintenance         --           350            --           3,500    --                 
                Insurance      --        585      --     --     --                                       
                Legal and                                                                                
                professional fees      --        --      --     500     --                               
                                                                                                        
                Mortgage interest      --        630      --     --     --                               
                Repairs             --           1,335          --           1,257    --                 
                Supplies      --      1,783      --     --     --                                        
                Taxes      --        --      --     557     --                                           
                Slip rental      --        --      --   6,900     --                                     
                Utilities           --           1,736          --           300      --                 
                Depreciation           $113         1,483        --          20,741     --               
                Total expenses      113          7,902          --           33,755   --                 





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