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The cap

ital gain reported in 1994 was gain on the sale of

the New Jers

ey house.

The bus

iness income reported each year was attributable to

three activi

ties that were reported on separate Schedules C,

Profit or Lo

ss From Business--one for Mr. Wood’s consulting

business (th

e consulting business Schedule C), one for his

property man

agement/real estate activity (the property management

  • -

    10 -

Schedule C),

and one for a distributorship (the distributorship

Schedule C).

The Schedules C reported aggregate net operating

losses each

year as follows:

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