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implements the congressional mandate in a reasonable manner, the
standard of review for an interpretative regulation. A fortiori
that regulation would not be arbitrary, capricious, or manifestly
contrary to the underlying statute, the higher standard of review
for a legislative regulation.
In determining the validity of section 1.469-5T(a)(1),
Temporary Income Tax Regs., 53 Fed. Reg. 5725 (Feb. 25, 1988), we
note first that that regulation in effect establishes a safe
harbor under which an individual may establish, without more,
that he or she satisfies the definition of material participation
in section 469(h)(1). However, neither petitioner nor any other
individual subject to section 469 is required to meet the minimum
hourly requirement of section 1.469-5T(a)(1), Temporary Income
Tax Regs., supra, in order to be treated as materially partici-
pating in an activity. An individual may satisfy the material
participation requirement by qualifying under that or any one of
six other alternative tests set forth in section 1.469-5T(a)(2)
through (7), Temporary Income Tax Regs., 53 Fed. Reg. 5725-5726
(Feb. 25, 1988). For example, an individual may be treated as
materially participating in an activity if his or her participa-
tion in that activity during the taxable year constitutes "sub-
stantially all of the participation in such activity of all in-
dividuals (including individuals who are not owners of interests
in the activity) for such year". Sec. 1.469-5T(a)(2), Temporary
Income Tax Regs., supra; see also H. Conf. Rept. 99-841 (Vol.
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