- 45 - 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 thanPage: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Next
Last modified: May 25, 2011