Maurice E. John, Jr. and Jan E. John - Page 1

                                 T.C. Memo. 2004-257                                  


                               UNITED STATES TAX COURT                                


                MAURICE E. JOHN, JR. AND JAN E. JOHN, Petitioners v.                  
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 10604-02.             Filed November 9, 2004.               


               R. Thomas Blackburn, Jr., for petitioners.                             
               Mark D. Eblen, for respondent.                                         


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               KROUPA, Judge:  Respondent determined a deficiency of                  
          $179,403 in petitioners’ Federal income taxes for 1995.  The                
          issue to be decided is whether petitioners are entitled to deduct           











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