Gerald D. and Catherine Leibowitz - Page 1

                                 T.C. Memo. 1997-243                                  


                               UNITED STATES TAX COURT                                


                  GERALD D. AND CATHERINE LEIBOWITZ, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 3542-94.                      Filed May 29, 1997.           


               Ronald G. Wohl and Robert S. Barnett, for petitioners.                 
               Nicholas G. Kokis and Lewis J. Abrahams, for respondent.               


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               BEGHE, Judge:  Respondent determined the following                     
          deficiencies and additions to tax in petitioners' Federal income            
          taxes:                                                                      









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