T.C. Memo. 2003-320                                  
                               UNITED STATES TAX COURT                                
                  DAMIAN GERARD AND LEIGH H. GERARD, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
              PETER W. HOBLER AND KATHERINE A. HOBLER, Petitioners v.                 
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               Docket Nos. 344-01, 346-01.        Filed November 20, 2003.            
               Richard D. Lageson and Brenda L. Talent, for petitioners.              
               Michael W. Bitner and Steven W. LaBounty, for respondent.              
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               THORNTON, Judge:  In these consolidated cases, respondent              
          determined deficiencies in petitioners’ 1994 Federal income taxes           
          as follows:                                                                 
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