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to that definition of participation. As pertinent here, section
1.469-5T(f)(2)(ii)(A), Temporary Income Tax Regs., 53 Fed. Reg.
5727 (Feb. 25, 1988), provides that work done by an individual in
such individual's capacity as an investor in an activity shall
not be treated as participation by the individual in the activity
unless the individual is involved in the day-to-day management or
operations of the activity. For this purpose, work done by an
individual in such individual's capacity as an investor in an
activity includes:
(1) Studying and reviewing financial statements or
reports on operations of the activity;
(2) Preparing or compiling summaries or analyses
of the finances or operations of the activity for the
individual's own use; and
(3) Monitoring the finances or operations of the
activity in a non-managerial capacity. [Sec. 1.469-
5T(f)(2)(ii)(B), Temporary Income Tax Regs., supra.]
Temporary regulations relating to the meaning of the term
"material participation" in section 469(h)(1) provide that, in
general,
an individual shall be treated, for purposes of section
469 and the regulations thereunder, as materially
participating in an activity for the taxable year if
and only if--
(1) The individual participates in the activity
for more than 500 hours during such year;
(2) The individual's participation in the activity
for the taxable year constitutes substantially all of
the participation in such activity of all individuals
(including individuals who are not owners of interests
in the activity) for such year;
(3) The individual participates in the activity
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