Jerry and Patricia A. Dixon, et al. - Page 54

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                                        1980                                          
               The Thompsons received an extension of time to file their              
          1980 tax return until June 15, 1981.  On that return (received by           
          the IRS on June 19, 1981), the Thompsons reported Kersting                  
          deductions of $72,840.                                                      
                                        1981                                          
               The Thompsons late filed their 1981 tax return on July 19,             
          1982, reporting Kersting deductions of $80,782 as investment                
          interest expense.  The Kersting deductions claimed on that return           
          were the principal factor in reducing the Thompsons’ adjusted               
          gross income of $113,711 to taxable income of $18,685--a                    
          reduction of $95,026.  The Thompsons also reported $8,000 of home           
          mortgage interest expense that was probably attributable to the             
          Bauspar program, in which the Thompsons began participating in              
          April 1981.                                                                 
                    3.   Years Following Those Before the Court                       
                                        1982                                          
               The Thompsons filed their 1982 tax return on May 6, 1983.10            
          On that return, the Thompsons reported Kersting (and probably               
          Bauspar) deductions sufficient to reduce their adjusted gross               
          income of $99,364 to taxable income of $4,336--a reduction of               


          10By October 1982, Mr. Thompson had retired as a pilot with                 
          Continental Airlines.                                                       





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