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petitioners are not entitled to the $25,000 offset provided at
section 469(i).
2. Average Period of Customer Use Less Than 7 Days
If the average period of customer use of petitioner's
condominium unit was 7 days or less, petitioner was not engaged
in a rental activity. Therefore, the activity of renting
petitioner's condominium unit does not constitute a "rental real
estate activity" for purposes of section 469(i), and petitioners
are not entitled to use the $25,000 offset provided therein.
Although the activity of renting petitioner's unit does not
constitute a rental activity under this assumption, the activity
will not be considered a passive activity if petitioners can
establish that they materially participated in the activity.
Sec. 469(c)(1)(B). Material participation is defined as
involvement in the operations of an activity on a regular,
continuous, and substantial basis. Sec. 469(h)(1). A taxpayer
can establish material participation by satisfying one of seven
tests provided in the regulations. Sec. 1.469-5T(a), Temporary
Income Tax Regs., 53 Fed. Reg. 5725-5726 (Feb. 25, 1988); see
also Mordkin v. Commissioner, T.C. Memo. 1996-187. In this
instance, however, we see no reason to set forth these tests and
discuss at length whether petitioners have satisfied any one of
them. Petitioners have offered little information concerning
whether their involvement in the operation of petitioner's unit
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