Arnold P. Mordkin and Cindy Mordkin - Page 27

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          tion, chairperson of the board of Crestwood Association, chair-             
          person of the executive committee, and chairperson of the manage-           
          ment compensation committee, petitioner spent time dealing with a           
          wide range of issues relating to the operations of Crestwood                
          Association.  By way of illustration, petitioner dealt with                 
          issues relating to the installation of the fire protection system           
          at Crestwood, the proposal by the town of Snowmass Village for              
          terminating its ownership of the Crestwood roads and parking                
          lots, employee housing, quality assurance, and management com-              
          pensation.  The work done by petitioner in his capacity as a                
          board member and an officer of Crestwood Association was work he            
          did in the management of the operations of Crestwood Association            
          and was not the type of work that is considered investor par-               
          ticipation within the meaning of section 1.469-5T(f)(2)(ii)(B),             
          Temporary Income Tax Regs., supra.                                          
               The second preliminary issue we address is whether petition-           
          er's involvement as a board member and an officer in the opera-             
          tions of Crestwood Association constitutes participation by                 
          petitioner in his rental activity at Crestwood within the meaning           
          of section 1.469-5(f)(1), Income Tax Regs.  We note that, in                
          those capacities during the years at issue, petitioner dealt with           
          a wide range of issues that affected not only the two Crestwood             
          condominium units he owned, but also all other Crestwood condo-             
          minium units.  At trial and on brief, petitioners assume, with no           
          discussion or explanation of the basis for such an assumption,              




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