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business activity in which the individual significantly
participates but in which the individual would not be treated as
materially participating under any of the other safe harbor
provisions. Sec. 1.469-5T(c)(1), Temporary Income Tax Regs., 53
Fed. Reg. 5726 (Feb. 25, 1988). An individual is treated as
significantly participating in an activity for a taxable year
only if he or she participates in the activity for more than 100
hours. Sec. 1.469-5T(c)(2), Temporary Income Tax Regs., 53 Fed.
Reg. 5726 (Feb. 25, 1988).
A taxpayer can establish his or her participation by any
reasonable means. Reasonable means “may include but are not
limited to the identification of services performed over a period
of time and the approximate number of hours spent performing such
services during such period, based on appointment books,
calendars, or narrative summaries.” Sec. 1.469-5T(f)(4),
Temporary Income Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988).
Contemporaneous daily time reports are not required if the extent
of the taxpayer's participation may be established by other
reasonable means. Id.
Petitioners attempt to come within the provisions of section
1.469-5T(f)(4), Temporary Income Tax Regs., supra, by relying on
Mr. Speer's testimony that, during 1988, 1989, and 1990, he
devoted over 150 hours to Gateway, over 250 hours to Maximo, and
over 150 hours to another business named Scheer Commerce Center,
Inc. (Scheer).
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