- 47 -
tion with the operations of Crestwood Association. Since Mr.
Dempsey, Ms. Gahm, and others were compensated during each of the
years at issue for the performance of management services in
connection with petitioner's rental activity at Crestwood, pur-
suant to section 1.469-5T(b)(2)(ii)(A), Temporary Income Tax
Regs., supra, the performance of management services by petition-
er cannot be taken into account for the purpose of determining
whether petitioner is to be treated under the facts and circum-
stances test as having materially participated in that activity
for each of those years.
In addition, the performance of management services during
each of the years at issue in connection with petitioner's rental
activity at Crestwood by individuals other than petitioner
exceeded, by hours, the performance of management services by
petitioner in connection with that activity.25 Consequently,
25 During each of the years at issue, petitioner spent a total
of at least 75, but no more than 135, hours in performing manage-
ment services in connection with the operations of Crestwood
Association and in attending to matters relating exclusively to
his two Crestwood condominium units. Mr. Dempsey and Ms. Gahm
each spent at least 40 hours a week in order to carry out their
management responsibilities in those operations. Moreover, there
were at least four to six other management employees who spent an
undisclosed amount of time in performing management services in
the operations of Crestwood Association. In comparing the time
spent by petitioner and by Mr. Dempsey, Ms. Gahm, and other
Crestwood management staff in providing management services in
connection with the operations of Crestwood Association, we have
assumed arguendo that all the work done by petitioner in his
capacity as a board member and an officer of Crestwood Associa-
tion was work done by him in connection with the rental of his
(continued...)
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