- 41 -
5T(a)(1), Temporary Income Tax Regs., supra, because he was
involved in that activity for more than 500 hours during each of
those years. Respondent disagrees with petitioners' contention.
Based on our examination of the entire record before us, we
find that petitioners have failed to establish through any rea-
sonable means as required by section 1.469-5T(f)(4), Temporary
Income Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988),23 that,
during each of the years at issue, petitioner's participation in
his rental activity at Crestwood exceeded 500 hours. On that
record, we have found as a fact that, during each of those years,
petitioner spent a total of at least 75, but no more than 135,
hours in attending to matters relating to the operations of
Crestwood Association and in attending to matters relating exclu-
23 Sec. 1.469-5T(f)(4), Temporary Income Tax Regs., 53 Fed. Reg.
5727 (Feb. 25, 1988), sets forth the manner in which an individu-
al may prove the degree of his or her participation in an activ-
ity. It provides that although a taxpayer is not required to
maintain contemporaneous daily time reports, logs, or similar
documents, the taxpayer must substantiate the level of his or her
participation through reasonable means. Reasonable means in-
clude, but are not limited to, "the identification of services
performed over a period of time and the approximate number of
hours spent performing such services during such period, based on
appointment books, calendars, or narrative summaries." Sec.
1.469-5T(f)(4), Temporary Income Tax Regs., supra.
Our finding that petitioner spent during each year at issue a
total of at least 75, but no more than 135, hours on matters
relating to the operations of Crestwood Association and on
matters relating exclusively to his two Crestwood condominium
units is based on the actual amount of time spent by him on such
matters as established by the record and our estimate of the time
spent by him on such matters where the record does not establish
the actual amount of time spent, but contains sufficient evidence
from which we were able to estimate the amount of such time.
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