- 29 -
Fed. Reg. 5725 (Feb. 25, 1988); consequently, petitioners may not
offset passive losses from the partnerships against CDI income in
those years. See Rule 142(a); Mordkin v. Commissioner, T.C.
Memo. 1996-187.
II. Whether Section 1.469-2T(f)(2), Temporary Income Tax Regs.,
Is Invalid
Since we hold that petitioners have failed to establish
that petitioner did not materially participate in the activity of
CDI during the years at issue, we need not address the validity
of section 1.469-2T(f)(2), Temporary Income Tax Regs., 53 Fed.
Reg. 5726-5727 (Feb. 25, 1988), either in general or as applied
to petitioners in this case. (The brief amicus filed on behalf
of the National Realty Committee addresses only this point.)
To reflect the foregoing and issues previously conceded,
Decision will be entered
for respondent.
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