Wing Yiu Kwan - Page 4




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          reference.  At the time the petition was filed, petitioner's                
          legal residence was San Francisco, California.                              
               Petitioner has a degree in electrical engineering from the             
          University of California at Berkeley.  During the year at issue,            
          petitioner was employed as an electrical engineer by the                    
          transportation department of the State of California known as               
          Caltrans.  At that time, petitioner designed electrical lighting            
          systems for California freeways.  At the time of trial,                     
          petitioner was employed by Caltrans as an inspector of electrical           
          systems.                                                                    
               Petitioner also conducted a trade or business activity                 
          during the year at issue known as Partners Travel (Partners).               
          Under the Partners name, petitioner conducted three different               
          types of business activities:  (1) A travel agency; (2) a                   
          computer-assisted long-distance telecommunications service to               
          provide customers with low rate phone calls from Mainland China             
          to the United States; and (3) a silk import activity.                       
               On his Federal income tax return for 1997, petitioner                  
          reported wage income of $69,979 from the State of California and            
          claimed dependency exemption deductions for two brothers, one               
          sister, and one aunt, totaling four dependency exemptions.                  
          Petitioner also included with his return a Schedule C, Profit or            
          Loss From Business, in connection with Partners.  On this                   







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