T.C. Memo. 1997-79                                   
                               UNITED STATES TAX COURT                                
                   DENNIS A. AND TAI K. PRAEGITZER, Petitioners v.                    
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                          KATHLEEN M. DAWES, Petitioner v.                            
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                                                                                     
               Docket Nos. 719-95, 1344-95.        Filed February 13, 1997.           
               Paul D. Sheldon, for petitioners in docket No. 719-95.                 
               James G. Roberts, for petitioner in docket No. 1344-95.                
               Robert E. Cudlip, for respondent.                                      
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               VASQUEZ, Judge:  Respondent determined the following                   
          deficiencies in and additions to petitioners' Federal income                
          taxes for the taxable year 1990:                                            
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