Terry Duane Beall and Joyce Engel Beall - Page 15

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          1034.  United States v. Sheahan, 323 F.2d 383 (5th Cir. 1963);              
          Stolk v. Commissioner, supra at 353; Bayley v. Commissioner, 35             
          T.C. 288, 297 (1960).                                                       
               Petitioners acquired 20 The Point on August 31, 1988, and              
          sold it on March 9, 1989.  During that period, they spent time at           
          both Mary Street and 20 The Point.  The distance between                    
          Riverside and Coronado is just over 100 miles, and the round-trip           
          drive time is approximately 4 hours.                                        
               Petitioners' case rests primarily upon Terry's testimony.              
          We are not required to accept his testimony as gospel, even                 
          though it is not controverted.  We may take into account whether            
          it is questionable.  Kean v. Commissioner, 51 T.C. 337, 343-344             
          (1968), affd. in part and revd. in part 469 F.2d 1183, 1188 (9th            
          Cir. 1972); Simon v. Commissioner, T.C. Memo. 1981-198.  At                 
          trial, Terry stated that petitioners believed that 20 The Point             
          became their principal residence as of August 1, 1988.  According           
          to Terry, between August 31, 1988, and March 1, 1989, he spent              
          the majority of his time in California at 20 The Point.  However,           
          as with most of Terry's testimony on direct examination, leading            
          questions were prevalent,3 resulting in a credibility issue.                

               3  During the direct examination of Terry, the Court                   
          expressed the following concerns:                                           
                    while leading questions are not always objectionable, I           
                    can tell you that I give much more credence to the                
                    witness' testimony than the attorney's, and when                  
                                                             (continued...)           




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