T.C. Memo. 2002-113                                  
                               UNITED STATES TAX COURT                                
                  MARK J. STEEL AND CONNIE J. STEEL, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                   ODD-BJORN HUSE AND LISA L. HUSE, Petitioners v.                    
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
          Docket Nos. 7338-00, 7453-00.           Filed May 6, 2002.                  
               Deborah A. R. Jaffe and Robert M. McCallum, for petitioners.           
               Randall E. Heath, for respondent.                                      
                                 MEMORANDUM OPINION                                   
               RUWE, Judge:  Respondent determined deficiencies of $2,400             
          and $56,639 in Mark J. and Connie J. Steel’s Federal income taxes           
          for 1996 and 1997, respectively.  Respondent determined a                   
          deficiency of $7,000 in Odd-Bjorn Huse’s Federal income tax for             
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