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In advancing their claim that petitioner materially par-
ticipated in his rental activity at Crestwood under the facts and
circumstances test, petitioners disregard the following limita-
tions with respect to the applicability of that test that are set
forth in section 1.469-5T(b)(2)(ii) and (iii), Temporary Income
Tax Regs., supra:
(ii) Certain management activities. An indi-
vidual's services performed in the management of an ac-
tivity shall not be taken into account in determining
whether such individual is treated as materially par-
ticipating in such activity for the taxable year under
paragraph (a)(7) of this section unless, for such
taxable year--
(A) No person (other than such individual)
who performs services in connection with the management
of the activity receives compensation described in
section 911(d)(2)(A) in consideration for such ser-
vices; and
(B) No individual performs services in
connection with the management of the activity that
exceed (by hours) the amount of such services performed
by such individual.
(iii) Participation less than 100 hours. If an
individual participates in an activity for 100 hours or
less during the taxable year, such individual shall not
be treated as materially participating in such activity
for the taxable year under paragraph (a)(7) of this
section.
Respondent contends that the foregoing limitations preclude
petitioner from being treated under the facts and circumstances
test as having materially participated for each of the years at
issue in his rental activity at Crestwood.
We have found as a fact that during each of the years at
issue petitioner spent a total of at least 75, but no more than
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