- 46 -
135, hours in attending to matters relating to the operations of
Crestwood Association and in attending to matters relating ex-
clusively to his two Crestwood condominium units. If during
either of the years at issue petitioner were involved in his
rental activity at Crestwood for 100 hours or less, pursuant to
section 1.469-5T(b)(2)(iii), Temporary Income Tax Regs., supra,
petitioner would not be treated under the facts and circumstances
test as having materially participated in that activity for
either year.
Assuming arguendo that petitioner were involved in his
rental activity at Crestwood for more than 100 hours during each
of the years at issue, petitioner nonetheless could not be treat-
ed under the facts and circumstances test as having materially
participated in that activity for either of those years because
of the limitations set forth in section 1.469-5T(b)(2)(ii)(A) and
(B), Temporary Income Tax Regs., 53 Fed. Reg. 5726 (Feb. 25,
1988). During 1989 and 1990, petitioner was involved in his
rental activity at Crestwood almost exclusively through the
performance of management services in connection with the opera-
tions of Crestwood Association. During each of those years,
individuals other than petitioner, including Mr. Dempsey, vice
president, chief operating officer, and general manager of Crest-
wood Association, and Ms. Gahm, assistant general manager of
Crestwood Association, participated in petitioner's rental ac-
tivity at Crestwood by performing management services in connec-
Page: Previous 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 NextLast modified: May 25, 2011