-7- several hours for reviewing equipment and operating budgets and for paying property taxes, special condominium assessments, housekeeping bills, and maintenance bills. Similar activities were recorded on the 1992 written activities list. Investor activities do not qualify as participation in a trade or business unless the individual is directly involved in the day- to-day management or operations of the activity. Sec. 1.469- 5T(f)(2)(ii), Temporary Income Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988). Much of petitioners' activities during 1991 and 1992, like those described above, are investor activities or activities of a personal nature that do not qualify as participation in a trade or business. See Toups v. Commissioner, T.C. Memo. 1993-359; sec. 1.469-5T(f)(2)(ii), Temporary Income Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988). The financial work done by petitioners was in connection with their investment. The Treasury regulations provide that "Work done by an individual in the individual's capacity as an investor in an activity shall not be treated as participation in the activity for purposes of this section [sec. 469] unless the individual is directly involved in the day-to-day management or operations of the activity." Sec. 1.469-5T(f)(2)(ii)(A), Temporary Income Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988). Here, the day-to-day management or operations of the partnership was by a full-time staff rather than petitioners. See Mordkin v. Commissioner, T.C. Memo. 1996-Page: Previous 1 2 3 4 5 6 7 8 9 Next
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