Gary W. McDonough - Page 6

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          and equipment typically associated with ranches.  Petitioner did            
          not see (or ask to see) any record pertaining to a Hoyt                     
               On July 15, 1988, petitioner signed a four-page document               
          memorializing his intent to buy two units in TBS at a total cost            
          of $7,000.  The document (TBS document) included sections                   
          entitled “SUBSCRIPTION AGREEMENT AND SIGNATURE PAGE”,                       
          and “PARTNERSHIP AGREEMENT”, and it referenced a section in the             
          partnership agreement entitled “Risk Factors”.  The document                
          stated that petitioner, as a signer of the document, “recognizes            
          that even though the Partnership has a four year history of                 
          operations and earnings, their [his] investment therein is a                
          speculative venture, and if they elect [he elects] to                       
          participate, they [he] may lose the total amount of their [his]             
          investment.”  Petitioner did not seek independent professional              
          advice as to the TBS document before signing it, opting instead             
          to rely upon the words and actions of his coworkers as to their             
          participation in one or more Hoyt partnerships.  Later,                     
          petitioner purchased interests in DSBS 87-C and TBS 89-1, without           
          signing any partnership document as to those purchases.                     
          Petitioner knew at the time of his purchases that the Hoyt                  
          partnerships advertised that his participation in a Hoyt                    
          partnership allowed him to claim refunds of Federal income tax,             

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