Federal Home Loan Mortgage Corporation - Page 2

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               Robert A. Rudnick, Stephen J. Marzen, James F. Warren, and             
          Neil H. Koslowe, for petitioner.                                            
               Gary D. Kallevang, for respondent.                                     


                                 MEMORANDUM OPINION                                   

               RUWE, Judge:  Respondent determined deficiencies in                    
          petitioner’s Federal income taxes in docket No. 3941-99 for 1985            
          and 1986, as follows:                                                       
                    Year                          Deficiency                          
                    1985                     $36,623,695                              
                    1986                          40,111,127                          
          Petitioner claims overpayments of $9,604,085 for 1985 and                   
          $12,418,469 for 1986.                                                       
               Respondent determined deficiencies in petitioner’s Federal             
          income taxes in docket No. 15626-99 for 1987, 1988, 1989, and               
          1990, as follows:                                                           
                    Year                          Deficiency                          
                    1987                         $26,200,358                          
                    1988                          13,827,654                          
                    1989                          6,225,404                           
                    1990                          23,466,338                          
          Petitioner claims overpayments of $57,775,538 for 1987,                     
          $28,434,990 for 1988, $32,577,346 for 1989, and $19,504,333 for             
          1990.                                                                       








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