- 11 -
TMC or its subcontractors. Petitioner wife's involvement appears
to have been limited to making decisions concerning how the unit
should be decorated. Petitioner wife did not testify about her
alleged hours of participation.
After carefully reviewing the record, we find that
petitioners have not proved that they participated in the
activity of renting their unit for more than 100 hours during any
of the taxable years in issue. We therefore need not decide
whether petitioners satisfy the section 1.469-5T(a)(3), Temporary
Income Tax Regs., 53 Fed. Reg. 5726 (Feb. 25, 1988), second
requirement of participating in the activity of renting their
unit more than any other individual. See Serenbetz v.
Commissioner, T.C. Memo. 1996-510.
We conclude that petitioners did not materially participate
in the activity of renting their unit during 1991, 1992, and
1993. Accordingly, we hold that petitioners' claimed losses from
such activity constitute passive activity losses which are not
deductible in the taxable years in issue by reason of section
469.
To reflect the foregoing,
Decision will be entered
for respondent.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11
Last modified: May 25, 2011