- 13 -
Cf. Mordkin v. Commissioner, supra. Consequently, we assume that
all work done by full-time staff constitutes "participation" in
connection with the rental of petitioner's unit. Id. Because
the participation of full-time staff exceeded petitioner's
participation during the years in issue, petitioner's activities
do not constitute material participation under section 1.469-
5T(a)(3), Temporary Income Tax Regs., supra.7
Section 1.469-5T(a)(7), Temporary Income Tax Regs.
Petitioner argues that based on all the facts and
circumstances, she should be deemed to have materially
participated in the condominium hotel activity. Sec. 1.469-
5T(a)(7), Temporary Income Tax Regs., supra. The facts and
circumstances test provided in section 1.469-5T(a)(7), Temporary
Income Tax Regs., supra, is subject to certain limitations. A
taxpayer must participate in the activity for more than 100
hours. Sec. 1.469-5T(b)(2)(iii), Temporary Income Tax Regs., 53
Fed. Reg. 5726 (Feb. 25, 1988). Additionally, a taxpayer's
services performed in the management of an activity cannot be
considered for the purposes of establishing material
participation under section 1.469-5T(a)(7), Temporary Income Tax
Regs., supra, if other individuals performing management services
in connection with the activity were compensated for such
services. Sec. 1.469-5T(b)(2)(ii)(A), Temporary Income Tax
Regs., 53 Fed. Reg. 5726 (Feb. 25, 1988). Therefore,
7 See also Serenbetz v. Commissioner, T.C. Memo. 1996-510.
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