Courtney C. Haun and Rebecca F. Haun - Page 3

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          junior high school.  Throughout his life, Mr. Haun has enjoyed              
          using horses for, inter alia, roping, including team roping,                
          trail riding, and hog hunting and has participated in various               
          recreational activities involving roping horses, including                  
          attending roping horse shows, races, and competitions.  Mr.                 
          Haun's participation in those recreational activities was reduced           
          somewhat after petitioners started training and selling roping              
          horses (roping horse activity) on the Haughton property some time           
          during 1991.                                                                
               Before petitioners started the roping horse activity in                
          1991, Mr. Haun consulted with Robert Cook, a lawyer, who advised            
          him to incorporate that activity because of liability concerns.             
          That lawyer referred petitioner to Charles D. Churchill, a                  
          certified public accountant, who prepared petitioners' return for           
          1991.                                                                       
               Sometime prior to the years at issue, Mr. Haun also con-               
          sulted with Robert Rich, Jr., a professional horse trainer, about           
          the demand for and the difficulty of finding good horses and with           
          another professional horse trainer, Ben Lolly (Mr. Lolly), about            
          the amounts for which horses with which Mr. Lolly was familiar              
          were bought and sold.  Mr. Lolly told Mr. Haun about certain team           
          roping sales that had just started and about the United States              
          Team Roping Championships (USTRC).  Two people are needed in team           
          roping, a header and a heeler.  The header ropes the horns of the           
          cattle, and the heeler ropes its back feet.  As of the time of              




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